John Mason operates a consulting business, Mason Enterprises, as a sole proprietorship. He had to transfer $100,000 of stocks and securities into Mason Enterprises's name to show financial viability for the business. During the current year, the business had the following income and expenses from operations:

Consulting revenue $125,000

Travel expenses 40,000

Transportation 3,000

Advertising 7,000

Office expense 3,000

Telephone 1,000

Dividend income 5,000

Interest income 2,000

Charitable contribution 1,000

Political contribution 6,000

Determine the Schedule C net income. How are items not included in the Schedule C net income reported?