Compute the net taxable income related to Jeannies Abstracts.

Jeannie Nelson is an artist; she works part-time teaching art 2 days a week at a magnet art school in their town. She earned $12,000 in salary from Cocoa Beach, School of the Arts, the following items were withheld from her gross wages, $1,200 federal income taxes, $120 state income tax, $744 social security, and $174 Medicare. She is not covered under their insurance plan as she only works 15 hours a week. She also volunteers 5 hours a week with the Girl Scouts of America as an art instructor.

a) Jeannie is known for beautiful Arabian influenced abstracts. During May and August of this past year she had a virtual exhibition and sold paintings at each event. She estimates that the cost of each painting in canvas and supplies is about $425. a) The sales are as follows:

i) May - 19 paintings for a total of $ 24,000

ii) August 12 paintings for a total of $ 18,000

b) She paints in a studio located in a separate building on the property of their home. The expenses related to the studio allocated on the basis of square footage are as follows:

i) Depreciation $3,600

ii) Taxes $1,900

iii) Utilities $3,400