Reference no: EM132808441

Dr. Berger, a physician, reports on the cash basis. The following items pertain to Dr. Berger's medical practice in Year 6:

Cash received from patients in Year 6 $200,000
Cash received in Year 6 from third-party reimbursers for services provided by Dr. Berger in Year 5 $30,000
Salaries paid to employees in Year 6 $20,000
Year-end Year 6 bonuses paid to employees in Year 7 $1,000
other expenses paid in Year 6 $24,000

Problem 1: What is Dr. Berger's net income for Year 6 from his medical practice?

option 1: $155,000

option 2: $156,000

option 3: $185,000

option 4: $186,000