Comprehensive Problem $11-73($LO $11-1,$ LO $11-2,$ LO $11-3,$ LO $11-4,$ LO $11-5,$ LO $11-6)($Algo$)$

$[$The following information appllies to the questlons displayed below.$]$

WAR $($We Are RIch$)$ has been In business since $1989.$ WAR is an accrual$-$method sole proprietorship that deals in the

manufacturing and wholesaling of various types of golf equipment. Hack & Hack CPAS has filed accurate tax returns for WAR's owner since WAR opened its doors. The managing partner of Hack & Hack $($Jack$)$ has gotten along very well wth

WAR's owner since WAR opened its doors. The managing partner of Hack & Hack $($Jack$)$ has gotten along very well with the owner of WAR$-$Mr$.$ Someday Woods $($single$).$ However, in early $2022,$ Jack Hack and Someday Woods played a round

of golf, and Jack, for the first time ever, beat Mr$.$ Woods. Mr$.$ Woods was so upset that he fired Hack & Hack and has hired you to compute his $2022$ taxable income. Mr$.$ Woods was able to provide you with the following information from prior tax

you to compute his $2022$ taxable Income. Mr$.$ Woods was able to provide you with the following information from prior tax returns. The taxable income numbers reflect the results from all of Mr$.$ Woods's activitles except for the ettems separately

stated. You will need to consider how to handle the s $2021$ numbers do not reflect capital loss carryovers.

$\backslash$table$[[$ Ordinary taxable income

Other items not inciuded $in,$$$2017,2018,2019,2020,2021],[4,020,$$$2,810,$$$94,235,$$$170,425,$$$250,625,]]$

ordinary taxabie income: Net gain $(10$ss$)$ on disposition of $51231$ assets

In $2022,$ Mr$.$ Woods had taxable Income in the amount of $$482,000$ before considering the following events and transactions that transpired in $2022.$

transactions that transpired in $2022$:

patrons could test their new golf equip land on October $1,2022,$ for $$40,200.$

b$.$ On August $17,2022,$ WAR sold its golf testing machine, "Iron Byron," and replaced it with a new machine, "Iron Tiger:"

"Iron Byron" was purchased and installed for a total cost of $$22,200$ on February $5,2018.$ At the time of sale, "Iron

Byron" had an adjusted tax basis of $$4,200.$ WAR sold "Iron Byron" for $$25,500$

c$.$ In the months October through December $2022,$ WAR sold various assets to come up with the funds necessary to invest In WAR's latest and greatest Invention$-$the

invest in WAR's latest and greatest Invention$-$the three$-$dimple golf ball. Data on these assets are provided below:

d$.$ Finally, on May $7,2022,$ WAR decided to sell the bullding where it tested its plutonlum shaft, IIgnite head drivers. WAR

purchased the bullding on January $5,2010,$ for $$192,500($ $$172,000$ for the butilding, $$20,500$ for the land$).$ At the time

of the sale, the accumulated depreclation on the bullding was $$50,500.$ WAA $$303,000.$ The falr market value of the land at the time of sale was $$45,500$

Note: Do not round Intermedlate computations. amounts should be Indlcated by a minus slgn$.$