In EACH of the following situations the taxpayer is in the highest marginal tax bracket, which you should assume means 37% for ordinary income. Show in the table below the amount of income, and the amount of that income taxed at each rate:

a. The taxpayer purchases equipment for use in his business. The purchase cost is $120,000 and the entire amount is expensed using the Section 179 expense election. The asset is sold 3 years later for $60,000. b. The taxpayer purchases equipment for use in his business. The purchase cost is $120,000 and the entire amount is expensed using the Section 179 expense election. The asset is sold 3 years later for $160,000. c. The taxpayer purchases a building for use in his business. The purchase cost is $1,200,000 and in the 8 years the property is used $250,000 of cost recovery deductions are claimed. The building is sold for $1,800,000. d. The taxpayer purchases a building for use in his business. The purchase cost is $1,200,000 and in the 8 years the property is used $250,000 of cost recovery deductions are claimed. The building is sold for $800,000. e. The taxpayer purchases a building for use in his business. The purchase cost is $1,200,000 and in the 8 years the property is used $250,000 of cost recovery deductions are claimed. The building is sold for $2,800,000.

Situation	Total income	37% income
A
B
C
D
E