Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:

1. 1) issued stock for $46,000
2. 2) borrowed $28,000 from its bank
3. 3) provided consulting services for $45,000 cash
4. 4) paid back $18,000 of the bank loan
5. 5) paid rent expense for $10,500
6. 6) purchased equipment for $15,000 cash
7. 7) paid $3,300 dividends to stockholders
8. 8) paid employees' salaries of $24,000

What is Yowell's net income for Year 1?

Multiple Choice

• $10,500

• $7,200

• $20,700

• $34,500