10. Growers, LLC and 100% owned LLC reported on Gary’s 1040 as a sole proprietorship has the following items of income and costs.

• Sales $600,000
• Payment to lobbyist in Washington DC to influence Congress $ 10,000
• Meals and entertainment $ 30,000
• Travel documented with receipts $120,000
• Charitable contributions to the United Way $ 25,000
• Other deductible operating costs $400,000

What is the business income or loss?

1. $15,000
2. $30,000
3. $40,000
4. $65,000