Problem 7-45 (LO. 7) During 2020, Rick and his wife, Sara, had the following items of income and expense to report: Gross receipts from business $400,000 525,000 8,000 Business expenses Interest income from bank savings accounts Sara's salary Long-term capital gain on stock held as an investment Itemized deductions 50,000 4,000 $15,000 a. Assuming that Rick and Sara file a joint return, what is their taxable income (or loss) for 2020? > 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 2020? Rick and Sara's NOL for 2020 is b. What is the amount of Rick and Sara's NOL for 2020? Rick and Sara's NOL for 2020 is $ C. To what years can Rick and Sara's NOL be carried? It can be carried forward 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 business loss netted against Sara's salary. b. When computing taxable income, individual taxpayers are not allowed deductions for nonbusiness items. c. Adjustments must be made so that the loss more closely resembles the taxpayer's economic loss