Blue Water Kayak began operations on January 1, 2022. The owner invested $10,000 during the first year and was able to withdraw cash of $42,000 after a successful first year. During 2023, the second year of operations, the business reported profit of $175,000, owner withdrawals of $78,000, and no owner investments. In 2024, the third year, Blue Water Kayak incurred a loss of $5,000. The owner made no withdrawals and no owner investments during this period. At the end of 2024, owner’s capital was $120,000.

Required
Calculate the profit or loss for 2022.