Peggy is an executive for the Tan Furniture Manufacturing Company. Peggy purchased furniture from the company for $7,000. Tan would ordinarily charge a wholesale customer $8,500, and a retail customer $12,000 for the same furniture. Tans cost for the furniture was $8,000. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. Peggys gross income from the above is:

A. $5,000. B. $1,000. C. $4,000. D. $0.