Michelle and Mark are married and file a joint return. Michelle owns an unincorporated dental practice. Mark works part-time as a high school math teacher, and spends the remainder of his time caring for their daughter. During 2023, they report the following items:

a. What is Michelle and Mark’s taxable income or loss for the year?

b. What is Michelle and Mark’s NOL for the year?

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Mark's salary $18,000 Interest earned on savings account 1,200 Interest paid on personal residence 12,700 Itemized deductions for state and local taxes 9,400 Items relating to Michelle's dental practice Revenues 65,000 Payroll and salary expense 49,000 Supplies Rent Advertising Depreciation 17,000 16,400 4,600 8,100