Dianne started her daycare business on January 1, 2017; it is open five days a week from 8:30 AM to 5:30 PM all year. (Use 260 days for the year.) Dianne was required to purchase additional insurance, a rider, due to operating a business in the home. Their home is valued at $270,200, which includes the land value of $20,000. The total area of the house is 2,000 square feet, and she uses the whole house for the daycare.

Gross receipts for daycare business: $13,600

Expenses: Electricity $2,270 Advertising $82 Toys $475 Water $448 Home insurance (rider) $509 Mortgage interest $7,276 Real estate tax $1,675 Repairs to home (damage by child) $275 Business license $100 Meals for the children $5,050 Homeowners insurance $1535 Paint entire house (inside & out) $4,245 CPR class $600 Personal draw (Dianne) $5,000

Select the amount daycare business net profit/loss:

A) $2,660

B) $1,848

C) $ 135

D) $ 735