Rocky has a full time job as an electrical engineer for the cityutility. In his

Rocky has a full time job as an electrical engineer for the cityutility. In his spare time he repairs TV sets in the basement ofhis residence. Most of his business come from friends and referralsfrom former customers although occasionally he runs an ad in thelocal suburbia newspaper. Typically the sets are dropped off atRockys house and later picked up by the owner when notified thatthe repairs have been made. The floor space of Rockys residence is2500square feet and he estimates that 20% of this is devotedexclusively to the repair business. Gross income from the businessis $12000 and expenses (other than home office) are $5000.Expenses relating to the residence are as follows:real property tax $4500interest on home montgage $8000operating expenses of residence $3000depreciation ( based on 20% business use) $500What is Ricks net income from the repair business?