Smith operates a roof repair business. This year, Smith's business generated cash receipts of $32,660, and Smith made the following expenditures associated with his business: Advertising Car and truck expenses Depreciation Employee compensation Education $ 535 1,332 3,222 5,175 1,700 The education expense was for a two-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