Mrs. K owns her own consulting firm, and her husband, Mr. K, owns a printing business. This year, Mrs. K's consulting business generated $89,000 taxable income. Mr. K's business operated at a loss. In July, Mr. K bought new office furniture for $16,000. This was the only purchase of tangible business personality by either spouse for the year. Mr. and Mrs. K always file a joint tax return.
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.