Ethan Carlson, a sole proprietor, is budgeting for the coming year. He will start the year with a $50,000 balance in his capital account from money he saved to start this project. During the year Ethan anticipates that he will withdraw $30,000 from the business for living expenses. However, he anticipates a tax refund in May so he will contribute $20,000 to the business at that time. Ethan predicts that the pretax business income for the year will be $120,000. What is the estimated balance in Ethan’s capital account at the end of the year? How much will Ethan report on his Form 1040 for tax purposes?