Michael has his own private consulting practice (Lapin Legal Consultancy, LLC, EIN: 55-5687541, Business code: 541110, Accounting method: Cash Basis), located at 195 Chambers street, New York, NY 10007. The income and expenses associated with his practice are as follows:

Gross Receipts	305,500
Rent	125,000
Office Salaries	75,000
Office Supplies	11,000
Advertisement	9,000
Utilities	8,000
Phone/Internet	3,000
Accounting Fees	12,000
Health Insurance Plan Employees	15,000
Office Maintenance	5,000
Office Equipment (see Note 1)	30,000
Travel (see Note 2)	6,000
Miscellaneous	1,500
Damages (see Note 3)	90,000

Note 1 the category office equipment includes printers, computers, fax machines, percolators, phones, microwave, and office refrigerator. The items were placed in service during 2019. Michael is unfamiliar with the tax treatment and therefore requires your help. He is greatly concern with the tax benefits available for the costs incurred for office equipment. Hint: should he capitalized and depreciate the equipment cost, or is there another available tax treatment?

Note 2 Michael visited Miami on a conference that was specific to his business. He spent a total of three days in Miami. However the conference was only two days, but since Michael loved the beach; he decided to stay another day. The total expenses incurred on the trip were 6,000.

Note 3 Lapin Legal Consultancy, LLC, was sued by the US government, regarding a criminal violation of antitrust laws. He entered a no-contest plea and paid the fine of 90,000 to settle the case.

Determine the net income or net loss of the business.