Dr. Berger, a physician, reports on the cash basis. The following items pertain to Dr. Berger’s medical practice in 2006:
|
Cash received from patients in 2006 |
$200,000 |
|
Cash received in 2006 from third-party reimbursers for services provided by Dr. Berger in 2005 |
30,000 |
|
Salaries paid to employees in 2006 |
20,000 |
|
Year-end 2006 bonuses paid to employees in 2007 |
1,000 |
|
Other expenses paid in 2006 |
24,000 |
What is Dr. Berger’s net income for 2006 from his medical practice?
- $155,000
- $156,000
- $185,000
- $186,000