What is the company's net income for the current year using the cash-basis of accounting?

The following is information is from Clark Corporation's financial records for the current fiscal year.
i. Cash received from customers, $230,000
ii. Revenue earned, $255,000
iii. Cash paid for wages, $110,000
iv. Wage expense incurred, $115,000
v. Cash paid during the current year for computers that will be used for 3 years, $30,000
vi. Depreciation expense, $10,000
vii. Proceeds from issuing debt (e.g., borrowed money from a bank), $30,000
viii. Interest incurred on debt, $3,000
ix. Cash paid for supplies, $4,000
x. Supplies expense incurred, $2,000
A) $135,000
B) $130,000
C) $86,000
D) $125,000
E) $92,000

Ans: D) $125,000