Lew started a business writing a popular syndicated Japanese gardening column in the current year and will report a profit for his first year. His results of operations are as follows:

Gross income $38000

Travel expense 4,000

Business suits, to visit magazine editors 1,000

Transportation, 831 miles (58 cents per mile) 482

entertainment 800

subscription to bonsai and Japanese gardening magazines 500

Gifts: 8 at $100 each; 2 at $20 each 840

Rent and utilities for apartment, in total(15% is used for a home office) 1,000

instructions: what is the net income Lew should show on his Schedule C? Prepare

a schedule showing the calculation of his taxable income.