Depreciation: Calculate the amount of depreciation on the below assets. You do not need to complete Form 4562. Assume Julie took 50% bonus depreciation on the tangible personal property in the year she placed the asset into service. Also, recall that you must adjust the full-year depreciation rate when an asset is sold during the year.

Description Life

Computer 5 Furniture 7 Office Building 39

Cost Basis

2,000 4,000 120,000

Purchase Date

January 2017 December 2018 September 2018

Sale Date

N/A N/A July 2022

Convention

Half-year Mid-quarter Mid-month

j. Sale of the office building: Julie sold the office building in July of 2022. The amount realized on the sale is $135,000. Assume the adjusted basis at the date of the sale is $100,000 (cost basis 120,000 20,000 of accumulated depreciation). o Calculatethegainorlossontheassetsale,andthenreportitinPartIIIofForm4797.Line32

on the second page of the form eventually transfers to the first page of the form. o Juliehas$6,000ofnonrecapturednet1231lossesfromtwoyearsago.Reportaccordinglyon

page 1 of the Form 4797. o FinishcompletingForm4797,andyouwillfindthataportionofthegainendsuponSchedule

D Line 11, and a portion of the gain ends up on Line 4 of Schedule 1.

Record the total net profit from the complete Schedule C on the applicable line of Form 1040.

Julie made estimated tax payments of $5,000 related to her coaching business. Report the amount

directly on Line 26 of Form 1040.

Julie contributed $6,000 to a SEP IRA.