Lauren Cooper had a beauty shop in the basement of her home. During the current year, she had gross receipts of $32,000. She spent $3,500 for supplies, paid an assistant $4,200, incurred allocated utility expenses of $800, depreciation expense of $1,200, a Section 1231 gain of $800, and a charitable contribution of $500. What is the net income that she will report on her Schedule C?

$22,600

$22,300

$21,800

$21,600