Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2016:

Sales (less returns and allowances)……………………………………..$1,250,000

Cost of goods sold…………………………………………………………............500,000

Office expenses …………………………………………………………..................10,000

Depreciation* ……………………………………………………………............................?

Legal services …………………………………………………………….....................4,000

Salary expenses …………………………………………………………..................36,000

Travel expenses …………………………………………………………..................30,000

Repair expenses …………………………………………………………..................20,000

* Information related to Mr. Jones’s depreciation:

Cost of office furniture acquired and placed in service on

April 15, 2016 (7-year recovery). ……………………….......………………..$480,000

Cost of other property acquired and placed in service on August 1, 2016:

5-year recovery property (computers-not listed property) …………....6,000

7-year recovery property (equipment) ………………………………….........54,000

Depreciation on assets purchased prior to 2016: ………………………..28,000

Complete Thom’s 2016 Form 4562 and Schedule C of Form 1040, assuming Thom elects to expense the maximum amount possible under Sec. 179 but elects out of bonus depreciation.