Choose the answer that correctly describes a reason why Irene is required to file Form 8594, Asset Acquisition Statement Under Section 1060. The buyer is an S corporation. The form is used to calculate and report Irene's total gain from the sale of her business assets. The form is used to calculate and report the amount of ordinary income Irene realized from the sale of depreciable property. The total sales price the buyer agreed to pay

And question 2 if I may since upload take too long:

Q2 What amount will Irene need to pay for self-employment tax?

$3,861

$4,214

$5,698

$6,263

Thanks

Irene Parisi (38) is married, but she and her spouse have filed separately for the past few years. They will do so again for 2022. Irene has operated her business, Irene's Soaps and Accessories, in a rented retail space since January 1, 2017. The business is a sole proprietorship, and all of her income and expenses are reported on Schedule C, Profit or Loss from Business. Scenario Irene's commercial lease expired in 2022. After devoting herself to her business for five years, she decided it was time to focus her energy elsewhere. She notified her landlord that she was terminating the lease and vacating the property. She sold her business assets, including her inventory, in a single transaction on September 30, 2022. You will need to make the necessary entries required to report the sale of these business assets in the BlockWorks shell return. General Information Irene's personal information and general information about her sole proprietorship have been pre-entered for you. Some of the data relating to her business income and expenses has also been pre-entered. However, you may find it helpful to review the following information about her business prior to making the required entries in BlockWorks. Irene used a hybrid method of accounting. She used the accrual method to account for inventory and all the income and expenses related to the sale of inventory. She used the cash method to account for all other income and expenses. She materially participated in her business. She is not required to file any Forms 1099. Business Income and Expenses Business Income and Expenses Irene had the following income from her business during the year: Details about Irene's cost of goods sold (COGS) and her expenses are shown below. This information has been pre-entered for you in BlockWorks. Business Assets Information about Irene's business assets is shown below. The details relating to her vehicle and business mileage have been pre-entered in the BlockWorks Asset Manager. Since Irene did not sell her vehicle, you will not need to make any entries reporting the disposition of this asset. Information about the shop furniture and fixtures has also been pre-entered, although you will need to make the necessary entries to report the disposition of these assets. \begin{tabular}{|l|l|l|l|l|} \hline Depreciable Assets & \multicolumn{3}{|l|}{} \\ \hline Item & Placed in Service & Cost & PriorBonus & Prior Depreciation \\ \hline ShopFurnitureandFixtures & June 1, 2018 & $4,150 & $4,150 & N/A \\ \hline \multirow{5}{*}{ Vehicle } & Notes About Business Use of Vehicle \\ \cline { 2 - 4 } & Ireneusedherpersonalvehicleforbusinesspurposes.Sheownsa2017ToyotaRAV4,whichshepurchasednewonSeptember10,2017,for$27,000.Shestartedusingthevehicleinherbusinessimmediatelyafterpurchasingit.Shehasalwaysusedthestandardmileagerate,andshewillusethisagainfor2022.During2022,shedrove1,457milesforbusinessand943commutingmiles.Shealsodrove10,000personalmiles.Irenekeptdetailedrecordsofherbusinesstrips,andherrecordsnotethat875ofherbusinessmileswereincurredfromJanuary1,2022,throughJune30,2022.Theremaining582mileswereincurredfromJuly1,2022,throughSeptember30,2022. \\ \hline \end{tabular} Estimated Tax Payments Irene made three federal estimated tax payments of $3,025 each. The payments were made on April 15, 2022, June 15,2022 , and September 15,2022 . On those same dates, Irene also sent in state estimated tax payments of $800 each. Information about the estimated tax payments has been pre-entered in the BlockWorks shell return. Irene sold her business assets in a single transaction on September 30,2022 , to the Peerson Creek Soap Company, an S corporation. Make the necessary entries to report the sale of inventory, the sale of the furniture and fixtures, and the goodwill. You will also need to prepare Form 8594 , Asset Acquisition Statement, to show the allocation of the sales price. The total business sales price of $30,000 is allocated as follows: The EIN for the Peerson Creek Soap Company is 07-0000806. Their business address is 302 Mill Street, Your City, YS XXXXX. For the purpose of simplicity, there are no expenses associated with this sale. The buyer and seller provided an allocation of sales price in the sales contract. The aggregate fair market values listed for each asset class are the amounts agreed upon in the sales contract. The sales agreement did not include a license or covenant not to compete. Irene Parisi (38) is married, but she and her spouse have filed separately for the past few years. They will do so again for 2022. Irene has operated her business, Irene's Soaps and Accessories, in a rented retail space since January 1, 2017. The business is a sole proprietorship, and all of her income and expenses are reported on Schedule C, Profit or Loss from Business. Scenario Irene's commercial lease expired in 2022. After devoting herself to her business for five years, she decided it was time to focus her energy elsewhere. She notified her landlord that she was terminating the lease and vacating the property. She sold her business assets, including her inventory, in a single transaction on September 30, 2022. You will need to make the necessary entries required to report the sale of these business assets in the BlockWorks shell return. General Information Irene's personal information and general information about her sole proprietorship have been pre-entered for you. Some of the data relating to her business income and expenses has also been pre-entered. However, you may find it helpful to review the following information about her business prior to making the required entries in BlockWorks. Irene used a hybrid method of accounting. She used the accrual method to account for inventory and all the income and expenses related to the sale of inventory. She used the cash method to account for all other income and expenses. She materially participated in her business. She is not required to file any Forms 1099. Business Income and Expenses Business Income and Expenses Irene had the following income from her business during the year: Details about Irene's cost of goods sold (COGS) and her expenses are shown below. This information has been pre-entered for you in BlockWorks. Business Assets Information about Irene's business assets is shown below. The details relating to her vehicle and business mileage have been pre-entered in the BlockWorks Asset Manager. Since Irene did not sell her vehicle, you will not need to make any entries reporting the disposition of this asset. Information about the shop furniture and fixtures has also been pre-entered, although you will need to make the necessary entries to report the disposition of these assets. \begin{tabular}{|l|l|l|l|l|} \hline Depreciable Assets & \multicolumn{3}{|l|}{} \\ \hline Item & Placed in Service & Cost & PriorBonus & Prior Depreciation \\ \hline ShopFurnitureandFixtures & June 1, 2018 & $4,150 & $4,150 & N/A \\ \hline \multirow{5}{*}{ Vehicle } & Notes About Business Use of Vehicle \\ \cline { 2 - 4 } & Ireneusedherpersonalvehicleforbusinesspurposes.Sheownsa2017ToyotaRAV4,whichshepurchasednewonSeptember10,2017,for$27,000.Shestartedusingthevehicleinherbusinessimmediatelyafterpurchasingit.Shehasalwaysusedthestandardmileagerate,andshewillusethisagainfor2022.During2022,shedrove1,457milesforbusinessand943commutingmiles.Shealsodrove10,000personalmiles.Irenekeptdetailedrecordsofherbusinesstrips,andherrecordsnotethat875ofherbusinessmileswereincurredfromJanuary1,2022,throughJune30,2022.Theremaining582mileswereincurredfromJuly1,2022,throughSeptember30,2022. \\ \hline \end{tabular} Estimated Tax Payments Irene made three federal estimated tax payments of $3,025 each. The payments were made on April 15, 2022, June 15,2022 , and September 15,2022 . On those same dates, Irene also sent in state estimated tax payments of $800 each. Information about the estimated tax payments has been pre-entered in the BlockWorks shell return. Irene sold her business assets in a single transaction on September 30,2022 , to the Peerson Creek Soap Company, an S corporation. Make the necessary entries to report the sale of inventory, the sale of the furniture and fixtures, and the goodwill. You will also need to prepare Form 8594 , Asset Acquisition Statement, to show the allocation of the sales price. The total business sales price of $30,000 is allocated as follows: The EIN for the Peerson Creek Soap Company is 07-0000806. Their business address is 302 Mill Street, Your City, YS XXXXX. For the purpose of simplicity, there are no expenses associated with this sale. The buyer and seller provided an allocation of sales price in the sales contract. The aggregate fair market values listed for each asset class are the amounts agreed upon in the sales contract. The sales agreement did not include a license or covenant not to compete