During the year 2020, Henry was a certified public accountant who in addition to being a partner in a CPA firm owned four businesses spending the hours listed next to each of them in connection with these activities. Henry had previously elected not to group them. The activities were as follows:

Gas Station 120 hours 76,000 (loss)

Restaurant 180 hours 12,000 (income)

Dry Cleaners 160 hours 82,000 (loss)

Tool Rental Store 190 hours 65,000 (income)

The principal activity of the tool rental store was the rental of small to medium sized power tools. The average period of customer use for each rental was 2 days. With respect to each of the four activities (restaurant, gas station, dry cleaners and tool rental store) set forth above, unrelated employees each devoted in excess of 1,000 hours to the conduct of each activity.

How much of the losses from the Gas Station and Dry Cleaners for the year 2020 may be used to offset the income from (a) the Restaurant and Tool Rental Store and (b) Henry's $250,000 salary from his law practice? Explain your answer.