Christopher Crosphit (age 42) owns and operates a health club called "Catawba Fitness". The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190. Chris had the following income and expenses from the health club:

Income	$213,800
Expenses:
Business insurance	3,775
Office supplies	3,335
Payroll	98,900
Payroll taxes	9,210
Travel	2,420
Equipment & club maintenance	10,666
Cleaning service	8,775
Equipment rent	22,820
Telephone	2,780
Utilities (electric, water, gas)	13,975
Rent	29,800
Advertising	5,150
Special workout clothing and boxing gloves	780
Subscription to Biceps Monthly magazine	120
Educational seminar on weight training	875
Other expenses	1,830

The business uses the cash method of accounting and has no accounts receivable or inventory held for resale.

Chris has the following interest income for the year:

Upper Piedmont Savings Bank savings account	$12,831
Morgan Bank bond portfolio interest	11,025

(You may assume that the bond portfolio interest is from corporate bonds.)

Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and he files his tax return as head of household. Arnold is an 18-year-old high school student; he does not qualify for the child tax credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 153 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities.

Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $1,000 on April 15, 2016.