Exercise $2-22$A $($Static$)$ Closing the accounts LO $2-4$

The following information was drawn from the accounting records of Wyckoff Company as of December $31,$ Year $2,$ before the temporary accounts had been closed. The Cash balance was $$3,600,$ and Notes Payable amounted to $$4,000.$ The company had revenues of $$7,500$ and expenses of $$3,400.$ The company$$s Land account had a $$8,000$ balance. Dividends amounted to $$1,000.$ The balance of the Common Stock account was $$2,000.$

Required:

Identify which accounts would be classified as permanent and which accounts would be classified as temporary.

Assuming that Wyckoff$$s beginning balance $($as of January $1,$ Year $2)$ in the Retained Earnings account was $$2,500,$ determine its balance after the temporary accounts were closed at the end of Year $2.$

What amount of net income would Wyckoff Company report on its Year $2$ income statement?