Lan Corp., an accrual-basis calendar-year repair service corporation, was formed and began business on January 6, 20x1. Lans valid S corporation election took effect retroactively on January 6, 20x1. For the following problems, determine the amount, if any, using the fact pattern ofr each item..

1. Assume the following facts: - Lans 20x1 books recorded the following items: - Gross receipts : $7,260 - Interest income on investments : 50 - Charitable contributions : 1,000 - Supplies : 1,120

What amount of net business income should Lan report on its 20x1 Form 1120S, US Income Tax Return for an S corporation, Schedule K?