Donald T. (age 48, DOB: 5/8/1970, SSN: 306-00-1010) and Dianne W. (age 43, DOB: 11/15/1975, SSN: 306-00-1212) are married and have lived together at 910 Riverline Drive, Your City, Your State - Your Zip for several years. Donald is a printer at the Post Tribune, and Dianne operates a daycare business from home. Their 1099s and W-2s follow. Donald wants to designate $3 of his taxes for the Presidential Campaign Fund, but Dianne does not. They will file a joint return for the 2018 tax year. The family was covered by health insurance for the entire year. 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 Donald owns a residential rental property located at 1602 Gaskin Road., Your City, Your State - Your Zip, which he purchased and placed in service on May 5, 2017. The cost of the property was $150,000, of which $30,000 was for the land. The total rental income was $12,600. The house was rented for the entire year. The rent was sent directly to Donald, as were any tenant requests for repairs. Expenses for the rental property include: Mortgage Interest $ 5,525 Real Estate Taxes $ 1,520 Homeowners Insurance $ 547 Repairs of Roof $ 780

Select the amount daycare business net profit/loss: A) $2,660 B) $1,848 C) $ 135 D) $ 735