Maple Company. All of the dividends received in 2018 are qualified dividends. 4. Armando practices under the name "Armando Z. Gonzales, DDS." His business is located at 645 West Avenue, Cincinnati, OH 45211, and his employer identification number is 01-2222222. Armando's gross receipts during the year were $111,000. Armando uses the cash method of accounting for his business. Armando's business expenses are as follows: Advertising $1,200 . Professional dues $490 Professional journals $360 Contributions to employee benefit plans $2,000 Malpractice insurance $3,200 . Fine for overbilling State of Ohio for work performed on welfare patient $5,000 Insurance on office contents $720 . Interest on money borrowed to refurbish office $600 Accounting services $2,100 Miscellaneous office expense $388 Office rent $12,000 Dental supplies $7,672 Utilities and telephone $3,360 Wages $30,000 Payroll taxes $2,400 In June, Armando decided to refurbish his office. This project was completed and the assets placed in service on July 1. Armando's expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period) and $2,000 for a new computer. Armando elected to compute his cost recovery allowance using MACRS. He did not elect to use