Diana and Ryan Workman were married on January $1$ of last year. Ryan has an eight$-$year$-$old son, Jorge, from his previous marriage. Diana works as a computer programmer at Datafile Incorporated $($DI$)$ earning a salary of $$96,500.$ Ryan is self$-$employed and runs a day care center. The Workmans reported the following financial information pertaining to their activities during the current year.

a$.$ Diana earned a $$96,500$ salary for the year.

b$.$ Diana borrowed $$12,100$ from DI to purchase a car. DI charged her $2$ percent interest $($$$242)$ on the loan, which Diana paid on December $31.$ Dl would have charged Diana $$730$ if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a motive for the loan.

c$.$ Ryan received $$2,050$ in alimony and $$4,600$ in child support payments from his former spouse. They divorced in $2016.$

d$.$ Ryan won a $$910$ cash prize at his church$-$sponsored Bingo game.

e$.$ The Workmans received $$550$ of interest from corporate bonds and $$300$ of interest from a municipal bond. Ryan owned these bonds before he married Daina.

f$.$ The couple bought $52$ shares of ABC Incorporated stock for $$41$ per share on July $2.$ The stock was worth $$49$ a share on December $31.$ The stock paid a dividend of $$1$ per share on December $1.$

g$.$ Ryan's father passed away on April $14.$ He inherited cash of $$51,000$ from his father and his baseball card collection, valued at $$2,100.$ As the beneficiary of his father's life insurance policy, Ryan also received $$151,000.$

h$.$ The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $$1,300.$

i$.$ Diana received $$600$ cash for reaching $10$ years of continuous service at DI$.$

j$.$ Diana was hit and injured by a drunk driver while crossing a street at a crosswalk. she was unable to work for a month.

She received $$6,200$ from her disability insurance. DI paid the premiums for Diana, but it reported the amount of the premiums as compensation to Diana on her year$-$end W$-2.$

k$.$ The drunk driver who hit Diana in part $($j$)$ was required to pay her $$2,100$ medical costs, $$1,600$ for the emotional trauma she suffered from the accident, and $$5,200$ for punitive damages.

I. For meeting her performance goals this year, Diana was informed on December $27$ that she would receive a $$5,100$ year$-$end bonus. Di $($located in Houston, Texas$)$ mailed Diana's bonus check from its payroll processing center $($Tampa$,$ Florida$)$ on December $28.$ Diana didn't receive the check at home until January $2.$

m$.$ Ryan is a $10$ percent owner of MNO Incorporated, a Subchapter S corporation. The company reported ordinary business income for the year of $$94,000.$ Ryan acquired the MNO stock two years ago.

n$.$ Ryan's day care business collected $$40,000$ in revenues. In addition, customers owed him $$3,500$ at year$-$end. During the year, Ryan spent $$6,000$ for supplies, $$2,000$ for utilities, $$16,000$ for rent, and $$550$ for miscellaneous expenses.

One customer gave him use of their vacation home for a week $($worth $$3,000)$ in exchange for Ryan allowing their child to attend the day care center free of charge.

Ryan accounts for his business activities using the cash method of accounting.

o$.$ Diana's employer pays the couple's annual health insurance premiums of $$6,000$ for a qualified plan.

$1.$ Assuming the Workmans file a joint tax return, determine their gross income minus expenses on the day care business $($this is called total income on the Form $1040).$

$3.$ Assuming the Workmans live in California, a community property state, and that Diana and Ryan file separately, what is Diana's gross income minus expenses on the day care business?