During 2017, 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?ss