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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 | $ 234,200 | $ 204,200 | $ 56,200 |
Equipment | 84,200 | 152,200 | 27,200 |
Lily's taxable income before these transactions is $194,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 10,275 | 10% of taxable income |
$ 10,275 | $ 41,775 | $1,027.50 plus 12% of the excess over $10,275 |
$ 41,775 | $ 89,075 | $4,807.50 plus 22% of the excess over $41,775 |
$ 89,075 | $ 170,050 | $15,213.50 plus 24% of the excess over $89,075 |
$ 170,050 | $ 215,950 | $34,647.50 plus 32% of the excess over $170,050 |
$ 215,950 | $ 539,900 | $49,335.50 plus 35% of the excess over $215,950 |
$ 539,900 | $162,718 plus 37% of the excess over $539,900 |
Description | Amount |
Taxable income | |
Tax liability |
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