During 2022, Rick and his wife Sara, had the following items of income and expenses to report:

Gross receipts from business $400,000 Business expenses $25,000 Interest income from bank savings accounts 8,000 Sara salary 50,000 Long-term capital gain on stock held as an investment 4,000 itemized deductions $15,000

a. Assuming that Rick and Sara file a joint return, what is their taxable income (or loss) for 2022?

if required, use the minus sign to indicate a loss.

Adjusted gross income/loss [$ ] Taxable income/loss [$ ]

b. What is the amount of Rick and Sara's NOL for 2022? Rick and Sara's NOL for 2022 is [$ ]

c. To what years can Rick and Sara's NOL be carried?

d. Indicate whether the following statements are "True" or " False" regarding the rationale for excluding the items that do not affect the NOL computation.

a. Effectively, the NOL is made up of the following loss netted against Sara's salary. b. When computing taxable income, individual taxpayers are not allowed deductions for non-business items. c. Adjustments must be made so that the loss more closely resembles the taxpayer's economic loss.