Bill is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenant. The tenant made timely monthly rental payments of $550 per month for the months of January through December 2016. The following expenses were incurred on the entire building:

Utilities $3,600

Maintenance and repairs 900

Insurance 500

In addition, depreciation allocable to the rented apartment is $1,500. What amount should Bill report as net rental income for 2016?

a. $0

b. $100

c. $1,400

d. $2,600

e. None of the above

Please show all your calculations and explain your work and how you arrived at your answer. Thank you.