I:7-41 Business-Related Expenses. Mike, a self-employed consultant, incurs the following business-related expenses in 2022:

Actual automobile expenses $ 2,500 Moving expenses 4,000 Entertainment expenses 1,500 Travel expenses (including $500 of business meals) 2,500 Professional dues and subscriptions 500 Total $ 11,000 Mike earned $130,000 of gross income from his consulting business and had $12,000 of interest and dividend income in 2022 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 2022?

b. What is Mike and Ann’s AGI and taxable income in 2022, assuming he is married and files a joint return, and ignoring the self-employment tax?