Richard Operates a Hair Styling Boutique Out of His Home

Richard operates a hair styling boutique out of his home. The boutique occupies 420 of the home's 1,200 square feet of floor space. Other information is as follows: What amount of income or loss from the boutique should Richard show on his return?

A) $0 income or loss
B) $10,400 loss
C) $3,500 income
D) $1,300 income
E) None of the above