Paul practices under the name Paul J Smith, DDS. His gross receipts during the year were $111,000. He uses the cash method of accounting for his business. His business expenses are as follows:

Advertising $1,200

Professional dues $490

Professional journals for dentists $360

Contributions to employee pension plans $2,000

Malpractice insurance $3,200

Fine for overbilling State of Ohio for work performed on welfare patients $5,000

Insurance on office contents $720

Interest on money borrowed to refurbish office $600

Accounting services $2,100

Miscellaneous office expense $388

Office rent $12,000

Dental supplies used in dental services for patients $7,672

Utilities and telephone $3,360

Wages $30,000

Payroll taxes $2,400

Fee for preparation of 2018 tax return paid April 12, 2019, $500

Tax return 2019, how to compute his business net profit.