Question: 4 5 . LO . 7 During 2 0 2 4 , Rick and his wife, Sara, had the following items of income and expense

45. LO.7 During 2024, Rick and his wife, Sara, had the following items of income and expense to report:
Gross receipts from business $400,000
Business expenses 525,000
Interest income from bank savings accounts 8,000
Saras salary 50,000
Long-term capital gain on stock held as an investment 4,000
Itemized deductions 15,000
a. Assuming that Rick and Sara file a joint return, what is their taxable income for 2024?
b. What is the amount of Rick and Saras NOL for 2024?
c. To what years can Rick and Saras NOL be carried?
d. Based on your computations, identify the components of their NOL. What is the rationale for excluding the items that do not affect the NOL computation?

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