During 2015, Karen, a single taxpayer, reports the following income and expense items relating to her interior design business:
Revenues………………………………… $52,000
Cost of goods sold ……………………… 41,000
Advertising ……………………………… 3,300
Office supplies ………………………….. 1,700
Rent …………………………………….. 13,800
Contract labor ………………………….. 28,000
Karen also worked part-time during the year, earning $13,500. She reports a long-term capital gain of $4,200, and a short-term capital loss of $3,800. Her itemized deductions total $5,200.
a. What is Karen’s taxable income or loss for the year?
b. What is Karen’s NOL for the year?