On March 31, 2015, William Rafferty purchased three assets:

A machine for $20,000 that had a 5 year MACRS life

An office building for $400,000

1000 shares of IBM stock for $100 per share

He sold these three assets on March 31, 2018 for

Machine $17,000

Building $410,000

Stock $50,000

Assume his adjusted gross income was $50,000 exclusive of these transactions. Compute his adjusted income for 2018, using the provided MACRS schedule.

Alternatively, assume Grey Corporation had taxable income of $50,000 exclusive of these transactions. Calculate taxable income after the transaction for Grey Corporation.