Morton, a self-employed consultant, incurs the following business-related expenses in 2019 morton earned $136,000 of gross income from his consulting business and had $15,000 of interest and dividend income in 2019 before any of the above expenses are deducted. He has $16,000 of itemized deductions. Morton is married and files a joint return with his wife, Amanda, who has no income.

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Actual automobile expenses Moving expenses Entertainment expenses Travel expenses (including $350 of business meals) Professional dues and subscriptions Total $ $ 1,750 3,600 700 2,950 350 9,350 STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. $ $ $ $ 24,400 18,350 12,200 12,200 $1,300* $1,650* a. What is the amount of Morton's deduction for business-related expenses for 2019? b. What is Morton and Amanda's AGI and taxable income in 2019, assuming he is married and files a joint return, and ignoring the self-employment tax? Actual automobile expenses Moving expenses Entertainment expenses Travel expenses (including $350 of business meals) Professional dues and subscriptions Total $ $ 1,750 3,600 700 2,950 350 9,350 STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. $ $ $ $ 24,400 18,350 12,200 12,200 $1,300* $1,650* a. What is the amount of Morton's deduction for business-related expenses for 2019? b. What is Morton and Amanda's AGI and taxable income in 2019, assuming he is married and files a joint return, and ignoring the self-employment tax?

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