Problem 2. Installment Sales. B&G Copiers and Printers, Inc. sells a Cannon 67000 copy and print machine to Fairmont State College for $15,000 on March 1, 2018. Fairmont pays $5,000 on the date of purchase and continued to make $5,000 payments on March 1st in both 2019 and 2020, respectively. Assuming the cost of the Cannon 67000 to B&G was $7,500, how much total revenue and deductions would B&G recognize in 2018 for tax purposes? Problem 1. MACRS Depreciation. Select a business you would like to start (or if you have no interest in ever starting a business, just pick a business you might be interested in working for some day) and, using the internet and the tables in your packet, answer the following questions: (0) Please identify and list 8 assets (not including any real property or intellectual property) that you would need in order to successfully run this business and identify the cost of each asset using the internet. Asset Cost 1. 2. 3. 4. 5 6. 7. 8. (ii) Identify three assets from the list above, which you will assume were acquired in 2018 based on the "in service" dates below. You must select at least one from the 7 year asset class (which applies to most equipment) and one from the 5 year asset class (which applies to computer hardware). Increase the quantity of these assets so that the total cost of the three assets exceeds $1M. In addition, assume you own a building that houses your company headquarters that cost $600,000 ($500K for the building and $100K for the land). List the assets, quantity, and total cost of all assets below: Asset Quantity Total Cost Date in Service 1. 1/1/2018 2. 7/1/2018 3. 10/15/2018 4. Building $600,000 11/1/2018 Calculate the total MACRS depreciation on the four assets (disregarding bonus depreciation and any 179 deductions) by determining the depreciable basis for each asset, the applicable convention (mid- quarter, mid-year, mid-month) for the asset, determining the asset class/recovery period, and then running the individual calculations using the depreciation tables in your packet. Show all your calculations below