Shelby works for Dynasty Motors, an automobile dealership. All employees can buy a car at the company's cost plus 5%. The company does not charge employees the $400 dealer preparation fee that nonemployees must pay. Shelby purchased an automobile for $22,785 ($21,700 + $1,085). The company's cost was $21,700. The price for a nonemployee would have been $23,100 ($22,700 + $400 preparation fee).

How much must Alberto include in his gross income related to the purchase of the car?