The financial information is presented below for Bob's Appliance for the fiscal year ended 12/31/2020. Sales $720,000 Tax-exempt interest 12,000 Long-term capital gain 31,000 Short-term capital loss 25,000 Interest income 8,000 Passive activity loss 10,000 Cost of goods sold 400,000 Depreciation 24,000 Section 179 expense 12,000 Charitable contributions 6,000 Bob's salary expense 120,000 Employee salary expense 48,000 Payroll taxes on employee 9,000 Medical insurance expense for Bob 8,000 Medical insurance expense for employee 4,000 Rent expense 24,000 Other operating expenses 95,000 Net operating loss (from year ended 12/31/2019) 38,000 Bob is a sole proprietor of the company and he has 1 employee. Assume Bob is single, no dependents, and does not itemize his deductions. Other than the income from Bob's Appliance, Bob has a short term capital loss of 22,000. Question #1) What is the income from Bob's appliance business? Be sure to show and label all your work and cell reference. Question #2) Compute Bob's taxable income and tax liability. Explain how each item is treated by showing each of the items Be sure to show and label all your work and cell reference. The financial information is presented below for Bob's Appliance for the fiscal year ended 12/31/2020. Sales $720,000 Tax-exempt interest 12,000 Long-term capital gain 31,000 Short-term capital loss 25,000 Interest income 8,000 Passive activity loss 10,000 Cost of goods sold 400,000 Depreciation 24,000 Section 179 expense 12,000 Charitable contributions 6,000 Bob's salary expense 120,000 Employee salary expense 48,000 Payroll taxes on employee 9,000 Medical insurance expense for Bob 8,000 Medical insurance expense for employee 4,000 Rent expense 24,000 Other operating expenses 95,000 Net operating loss (from year ended 12/31/2019) 38,000 Bob is a sole proprietor of the company and he has 1 employee. Assume Bob is single, no dependents, and does not itemize his deductions. Other than the income from Bob's Appliance, Bob has a short term capital loss of 22,000. Question #1) What is the income from Bob's appliance business? Be sure to show and label all your work and cell reference. Question #2) Compute Bob's taxable income and tax liability. Explain how each item is treated by showing each of the items Be sure to show and label all your work and cell reference