Michelle and Mar are married and file a joint return. Michelle owns an unincorporated dental practice. Mark works part-time as a high school math teacher, and spends the remainder of his time caring for his daughter. During 2015, they report the following items:

Marks salary $18,000

Interest earned on savings account $1,200

Interest paid on personal residence $7,100

Itemized deductions for state and local taxes $3,400

Items relating to Michelles dental practice revenues $65,000

Payroll and salary expense $49,000

Supplies $17,000

Rent $16,400

Advertising $4,600

Depreciation $8,100

a. What is Michelle and Marks taxable income or loss for the year?

b. What is Michelle and Marks Net Operating loss for the year?

Hint: Taxable income is -$35,500 AGI and the NOL is -$12,100.