Graham Corporation has 1,000 cartons of oranges that were harvested at a cost of $29,800. The oranges can be sold as is for $35,440. The oranges can be processed further into orange juice at an additional cost of $12,925 and be sold at a price of $51,950. The incremental income (loss) from processing the oranges into orange juice would be:

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?