Michael operates his health food store as a sole proprietorship out of a building he owns. Based on the following information regarding Year 6, compute his net self-employment income (for SE tax purposes) for Year 6.

Gross receipts $100,000

Cost of Goods Sold 49,000

Utilities 6,000

Real estate taxes 1,000

Gain on sale of business truck 2,000

Depreciation expense 5,000

Section 179 expense 1,000

Mortgage interest on building 7,000

Contributions to Keogh retirement plan 2,000

Net operating loss (NOL) from Year 5 10,000

a. $24,000

b. $16,000

c. $31,000

d. $14,000