Question: Snoopy has a full - time job as an electrical engineer for the city of Peanuts. In his spare time, Snoopy repairs electronic gear in

Snoopy has a full-time job as an electrical engineer for the city of Peanuts. In his spare time, Snoopy repairs electronic gear in the basement of his personal residence. Most of his business comes from friends and referrals from former customers, although occasionally he runs an ad in the Peanuts newspaper. Typically, the items are dropped off at Snoopys house and later picked up by the owner when notified that the repairs have been made.
The floor space of Snoopys residence is 2,500 square feet, and he estimates that 22% of this is devoted exclusively to the repair business (550 square feet). Gross income from the business is $18,550, while business expenses (other than home office) are $11,225. Expenses relating to the residence are as follows:
Real property taxes
$3,200
Interest on home mortgage
6,7500
Operating expenses of residence
2,900
Depreciation (based on 22% business) use)
1,000
a. What is Snoopys net income from the repair business (the amount that would be reported on his Schedule C, line 31) if he uses the regular method of computing the deduction for office in the home?

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