I don't know how, but I'm at the end of the semester studying for my final and I can't even do this simple problem.



During 2014, a company had only the following transactions:



* Sold inventory originally costing $5,000 for $12,000 cash

* Incurred rent expense of $1,000; as of 12/31/14 only $800 has been paid

* Received $2,000 cash in advance from customers for merchandise that will be shipped next

year

* Paid $3,000 cash to employees for wages, $400 of which was earned during the previous year

(there are no unpaid wages as of the end of the current year)



Based on the above information, what was the company's accrual net income for 2014?



A. $5,400

B. $3,400

C. $6,000

D. $8,600