Dr. Berger, a physician, reports on the cash basis. The following items pertain to Dr. Berger’s medical practice in 2010:

Cash received from patients in 2010 $200,000 Cash received in 2010 from third-party reimbursers for services provided by Dr. Berger in 2009 30,000 Salaries paid to employees in 2010 20,000 Year-end 2010 bonuses paid to employees in 2011 1,000 Other expenses paid in 2010 24,000 What is Dr. Berger’s net income for 2010 from his medical practice?

a. $155,000

b. $156,000

c. $185,000

d. $186,000