Rocky has a full-time job as an electrical engineer for the city utility. In his

Rocky has a full-time job as an electrical engineer for the city utility. In his spare time Rocky repairs TV sets 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 local suburbia newspaper. Typically the sets are dropped off at Rockys house and later picked up by the owner when notified that the repairs have been made.The floor space of Rockys residence is 2500 square feet and he estimates that 20% of this is devoted exclusively to the repair business. Gross income from the business is $12000 while expenses (other than home office) are $5000. Expenses relating to the residence are as follows:Real property taxes$4500Interest on home mortgage8000Operating expenses of residence3000Depreciation (based on 20% business use)500 What is Rockys net income from the repair business?ANS: