Easel Co. has elected to reimburse employees for business expenses under a nonaccountable plan. Easel does not require employees to provide proof of expenses and allows employees to keep any amount not spent. Under the plan, Mel, an Easel employee for a full year, gets $400 per month for business automobile expenses. At the end of the year Mel informs Easel that the only business expense incurred was for business mileage of 9,000 at a rate of 50.5 cents per mile, the IRS standard mileage rate at the time. Mel encloses a check for $255 to refund the overpayment to Easel. What amount should be reported in Mel’s gross income for the year?