Mike, a self-employed consultant, incurs the following business-related expenses in 2023:

Mike earned \($130,000\) of gross income from his consulting business and had \($12,000\) of interest and dividend income in 2023 before any of the above expenses are deducted. He has \($20,000\) of itemized deductions. Mike is married and files a joint return with his wife, Ann, who has no income.

a. What is the amount of Mike’s deduction for business-related expenses for 2023?

b. What is Mike and Ann’s AGI and taxable income in 2023, assuming he is married and files a joint return, and ignoring the self-employment tax?

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Actual automobile expenses Moving expenses Entertainment expenses Travel expenses (including $500 of business meals) Professional dues and subscriptions Total $ 2,500 4,000 1,500 2,500 500 $ 11,000