icole operates her personal training business as a sole proprietor. She took $$15,350$ in bonus depreciation in $2020$ for fitness equipment she purchased. Nicole sold the equipment in $2022$ for $$4,500.$ How does Nicole report the $$4,500$ on her $2022$ tax return?

As ordinary income of $$4,500$ only.

As ordinary income of $$4,500$ plus self$-$employment tax of $$636.$

As a capital loss of $$10,850.$

Nicole does not have to report the sale proceeds as income since the fitness equipment was already fully expensed on a prior tax return.