What is karen taxable income or loss for the year

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Reference no: EM131782020

Problem - Net Operating Loss. During the year, 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?

Reference no: EM131782020

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