Case Study: Dave Needlemann Dave Needlemann, age 65, has built a successful law practice in a common law state. He had been married for 30 years to his wife Jan, who passed away 5 years ago. Dave has one son, Tom, who is also a lawyer and has worked in his father's law practice for the past four years. Dave owns the building in which his practice is located and owns a spacious home on a lake. Dave is now contemplating retirement and would like to sell his home and move to a retirement community on a golf course in Arizona. Dave has decided to sell or transfer his law practice to his son since Tom has proven that he can bring in new clients and manage the business. Dave's financial information anticipated for the current year is summarized below. * PPP - Privately placed partnership (not publicly traded) * PTP - Publicly traded partnership Net income from Dave's law practice (Sole-Proprietorship)$407,000Taxable interest14,000Non-taxable interest (public purpose municipal bond fund)28,000Taxable dividends (all qualified)22,000Net short-term capital gains3,800Net long-term capital loss(7,100)PPP* passive income8,500PTP* passive loss(2,000)Solo 401(k) plan contributions61,000Self-employed health insurance premium6,326Self-employment taxes29,128Real estate taxes18,250State sales tax2,400State income tax19,500Mortgage interest17,100Charitable contributions8,500 Based on the information provided, how much is Dave Needlemann's total (gross) income? A.$424,500 B.$426,500 C.$446,500