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Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022, she sells the following long-term assets used in her business:
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022, she sells the following long-term assets used in her business:
| Asset | Sales Price | Cost | Accumulated Depreciation |
|---|---|---|---|
| Building | $ 231,800 | $ 201,800 | $ 53,800 |
| Equipment | 81,800 | 149,800 | 24,800 |
Lily's taxable income before these transactions is $192,300. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference.
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