Smith operates a roof repair business. This year smith's business generated cash receipts of $32,000 and Smith made the following expenditures associated with his business: Advertising $500 Car and truck expense $1360 Depreciation $3200 Employee compensation $5000 Education $1000 The education expense was for a 2 week nighttime course in business management. Smith believes the expenditure should qualify as an ordinary and necessary business expense. What net income should Smith report from his business? Smith is on the cash method and calendar year