41. Tim and Sarah Lawrence are married and file a joint return. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1112. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-45-6788, and Debra's Social Security number is 123-45-6787 Tim is self-employed as the sole proprietor of an unincorporated business, and Sarah is a corporate executive. Tim reports the following 2017 income and expenses from his business Gross income Business expenses Sarah was covered for the entire year by her employer's health insurance policy. Other records related to Sarah's employment provide the following information. Salary Unreimbused travel expenses (including $200 of meals) Unreimbursed entertainment expenses $325,000 201,000 $145,000 1,100 500 Other pertinent information for the tax year follows. Proceeds from sale of stock acquired on July 15, 2017 9,800 (cost of $12,000), and sold on August 1, 2017 Proceeds from sale of stock acquired on September 18, 2016 (cost of $5,000), and sold on October 5, 2017 Wages paid to full-time domestic worker for housekeeping and child supervision Interest income received Total itemized deductions (not including any potential deductions above) Federal income tax withheld Estimated payments, Federal income tax Compute the 2017 net tax payable or refund due for Tim and Sarah Lawrence. 3,800 10,000 7,000 27,900 31,850 34,000