I need the following questions answered: 1. Brite-On business income (excluding sale of 7-yr equipment) 2. Gain or loss on sale of 7-yr equipment 3. Total income 4. Adjusted gross income 5. Taxable income 6. 2012 income tax per MFJ rate schedule 7. 2012 Self employment tax 8. Total tax 9. Overpayment or refund 10. Brite-On Depreciation for 2012 11. Accumulated Depreciation on 7-yr equipment sold 12. Auto lease payment bet of inclusion amount

John and Ellen Brite are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. Brite-On had the following assets on January 1, 2012: Assets: Old store building purchased April 1, 1999 Cost: $100,000 Equipment (7-year recovery) purchased January 10, 2007 Cost: $30,000 Inventory valued using FIFO: 4000 light bulbs Cost: $5/bulb Brite-On purchased a competitor's store on March 1, 2012, for $107,000. The purchase price included the following: New store building Land Equipment (5-year recovery) Inventory: 3000 light bulbs FMV $60,000 FMV $18,000 FMV $11,000 Cost: $6/bulb On June 30, 2012, Brite-On sold the 7-year recovery period equipment for $12,000. Brite-On leased a $30,500 car for $500/month beginning on January 1, 2012. The car is used 100% for business and was driven 14,000 miles during the year. Brite-On sold 8,000 light bulbs at a price of $15/bulb during the year. Also, Brite-On made additional purchases of 4,000 light bulbs in August 2011 at a cost of $7/bulb. Brite-On had the following revenues (in addition to the sales of light bulbs) and additional expenses: Service revenues Interest expense on business loans Auto expenses (gas, oil, etc.) Taxes and licenses Utilities Salaries $64,000 $4,000 $3,800 $3,300 $2,800 $24,000 John and Ellen also had some personal expenses: Medical bills Real property taxes State income taxes Home mortgage interest Charitable contributions (cash) $4,500 $3,800 $4,000 $5,000 $600 The Brites received interest income a bank savings account of $275. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume John spent 100% of his time at the store while Ellen spends no time at the store. Additional Facts: Equipment acquired in 2007: The Brites elected out of bonus deprecation and did not elect Sec. 179 Equipment acquired in 2012: The Brites elected Sec. 179 to expense the cost of the 5-year equipment but elected out of bonus depreciation Lease inclusion rules require that Brite-On reduce its deductible lease expense by $8