Assume that in addition to the information in Problem 49, Rick and Sara had no taxable income for 2011, 2012, 2013, and 2014 and $3,700 of taxable income for 2015 computed as follows:

a. Determine Rick and Sara's recomputed taxable income for 2015.
b. Determine the amount of Rick and Sara's 2016 NOL to be carried forward to 2017.

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Salary Capital loss Adjusted gross income Less: Itemized deductions Charitable contributions of $20,000, limited to 50% of AGI Medical expenses of $2,700, limited to the amount in excess of 10% of AGI ($2,700 – $2400) Total itemized deductions Exemptions (2 x $4,000) Taxable income $ 25,000 (1,000) $ 24,000 $12,000 300 (12,300) (8,000) $ 3,700