LO$\mathrm{.}7$ During $2022,$ Rick and his wife, Sara, had the following items of income and expense to report:

Gross receipts from business $$400,000$

Business expenses $525,000$

Interest income from bank savings accounts $8,000$

Sara$$s salary $50,000$

Long$-$term capital gain on stock held as an investment $4,000$

Itemized deductions $15,000$

Assuming that Rick and Sara file a joint return, what is their taxable income for $2022?$

What is the amount of Rick and Sara$$s NOL for $2022?$

To what years can Rick and Sara$$s NOL be carried?

Based on your computations, identify the components of their NOL. What is the rationale for excluding the items that do not affect the NOL computation?