1. Xinran, who is married and files a joint return, owns a grocery store. In 2019, his gross sales were $276,000, and his operating expenses were $320,000. Other items on his 2019 return were as follows:

   Nonbusiness capital gains (short-term)	$20,000
   Nonbusiness capital losses (long-term)	9,000
   Itemized deductions	18,000
   Ordinary nonbusiness income	8,000
   Salary from part-time job	10,000

   In 2020, Xinran provides the following information:

   Net business income				$60,000
   Salary (spouse)				25,000
   Interest income				2,000
   Adjusted gross income				$87,000
   Less: Itemized deductions*
   	Charitable contributions (cash) of $35,000, (limited to 60% of AGI)	$35,000
   	Medical expenses of $9,100, [limited to the amount in excess of 10% of AGI ($9,100 $8,700)]	400
   	Total itemized deductions			$35,400

   * The 2019 married filing jointly standard deduction is $24,400; Xinran's itemized deductions will exceed the 2020 standard deduction (after adjustment for inflation). The medical expense AGI floor is 10% in 2020.

   Enter all amounts as positive numbers. However, use the minus sign to indicate a loss.

   a. Compute Xinrans taxable income (or loss) for 2019?

   If an amount is zero, enter "0". If required, use the minus sign to indicate a loss.

   2019
   Net business income/loss from grocery store	$
   Salary
   Ordinary nonbusiness income
   Net short-term capital gain Net long-term capital loss Net short-term capital gain
   Adjusted gross income/loss	$
   Less: Standard deduction
   Less: Deduction for qualified business income
   Loss Income Loss	$

   b. Compute Xinran's NOL for 2019. $

   c. Determine Xinran's taxable income for 2020.

   2020
   (1)	Determine taxable income before application of the NOL:
   	Net business income			$
   	Salary
   	Interest income
   	Adjusted gross income			$
   	Less: Itemized deductions:
   	Less: Deduction for qualified business income:
   	Grocery store
   	Taxable income			$

   (2)	Determine the NOL deduction:
   	1. The NOL carryforward $, or
   	2. 80% of taxable income computed in step 1: $

   (3)	Determine final taxable income:
   	Net business income			$
   	Salary
   	Interest income
   	NOL deduction
   	Adjusted gross income			$
   	Less: Itemized deductions
   	Charitable contributions	$
   	Medical expenses
   	Less: Deduction for qualified business income:
   	Grocery store			$
   	Taxable income			$