Dano Bookem has decided to start his own enterprise growing wheat grass in 2016. The particular strain of wheat grass he plans on growing is very susceptible to direct sunlight, so Dano buys a vacant home in Elk Grove. He proceeds to board up all the windows, except the ones in his bedroom, and installs sophisticated hydroponic watering and growing light systems. Because Dano had previous experience working in a plant nursery that recently closed down, he did not spend any money investigating this new venture but just started right up. Dano brought in $75,000 selling his wheat grass at local craft shows on the weekends and to friends. He incurred the following expenditures during the year.

Expenditure	Amount
Lighting system	$15,000
Hydroponic equipment	$12,000
Wheat grass seeds	$28,000
Gas to the craft shows	$6,000
Danos time, based upon his prior jobs wage rate of $12/hour	$12,000
Doritos and other snacks	$3,000
Window coverings	$4,500
Electricity	$8,000
Water bills	$3,000
Purchase of the house	$175,000
Property taxes	$1,500
Mortgage interest	$6,000
Advertising expenses	$4,000
Containers to grow the grass in	$7,000
Plastic baggies for delivery	$2,500

Dano lived in the house full time to avoid having to move back in with his mother.

Required: Calculate Danos gross income and net income for tax purposes. Show all of your calculations and explain your reasoning for each item.