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