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John Mason operates a consulting business, Mason Enterprises, as a sole proprietorship. He had to transfer $100,000 of stocks and securities into Mason Enterprise's name to show financial viability for the business. During the current year, the business had the following income and expenses from operations:
Consulting revenue
$125,000
Travel expenses
40,000
Transportation
3,000
Advertising
7,000
Office expense
Telephone
1,000
Dividends
5,000
Interest
2,000
Charitable contribution
Political contribution
6,000
Determine the Schedule C net income. How are items not included in the Schedule C net income reported?
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