What is melinda and bill taxable income or loss the year

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Question - Melinda and Bill are married and file a joint return. Melinda owns an unincorporated dental practice. Bill works part-time as a substitute high school computer science teacher. He spends the rest of his time caring for their daughter. During 2014, they reported the following items of income and expense on their federal income tax return:

Bill's salary $ 18,000

Interest earned on a savings account 1,200

Interest paid on their personal residence 7,100

Itemized deductions for state and local taxes 3,400

Items relating to Melinda's dental practice

Revenues 65,000

Payroll and salary expense 49,000

Supplies 17,000

Rent 16,400

Advertising 4,600

Depreciation 8,100

(a) What is Melinda's and Bill's taxable income or loss for the year?

(b) What is Melinda's Net Operating Loss for the year?

Reference no: EM132032405

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