35- Mainstream Company purchased depreciable equipment in 2020 for $1,063,000 and claimed the maximum Sec. 179 deduction for that year of $1,040,000. The equipment qualified as 5-year property under MACRS. Mainstream sold all of this equipment on June 30, 2021. The depreciation rates for 5-year property for the first 2 years under MACRS, assuming 200%-declining-balance switching to straight-line, are 20% and 32%, respectively. What will the amount of Mainstream's MACRS deduction be for 2021?

$7,360

$0

$23,000

$3,680

36- Mr. E, a sole proprietor, is in the process of selling his retail store. Based on the following list of assets used in his business, what is the total amount of E's capital assets?

Accounts receivable

$20,000

Merchandise inventories

30,000

Buildings

40,000

Copyrights created by E

20,000

Goodwill acquired in 1990

30,000

Land

40,000

Furniture and fixtures

20,000

The goodwill is not being amortized.

$0

$80,000

$30,000

$200,000