Question - Melinda and Bill are married and file a joint return. Melinda owns an unincorporated dental practice. Bill works part-time as a substitute high school computer science teacher. He spends the rest of his time caring for their daughter. During 2014, they reported the following items of income and expense on their federal income tax return:
Bill's salary $ 18,000
Interest earned on a savings account 1,200
Interest paid on their personal residence 7,100
Itemized deductions for state and local taxes 3,400
Items relating to Melinda's 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 Melinda's and Bill's taxable income or loss for the year?
(b) What is Melinda's Net Operating Loss for the year?