The Grants have provided you some additional information pertaining to a construction business Bob started. This business, GPE, is a sole proprietorship with Bob being the sole owner. GPE is located at 1515 West Industrial Road Lexington, Kentucky 40502 (EIN 20-1616167). Bob reported the following information for GPEs business activities (GPE uses the cash method of accounting): Income Credit card receipts $834,000 Cash receipts 768,000 Dividend income 7,400 Municipal bond interest income 2,700 Expenses: Advertising $6,740 Insurance (for Sept. 1, 2020 Dec. 31, 2021) 24,000 Office building rent (for Jan. 1, 2020 Dec. 31, 2020) 64,000 Equipment leases (for Jan. 1, 2020 Dec. 31, 2020) 7,025 Travel 14,200 Meals for employees 3,975 Fee for box at Kentucky Friar games 8,000 Employee salaries 576,985 Taxes and licenses 38,250 Contributions to Sen. Dansons campaign 12,000 Employee health insurance 47,950 Employee benefit programs 15,225 Utilities 39,675 Office supplies 17,700 Legal and professional fees 14,760 Repairs and maintenance 9,540 Interest expense (used to purchase corporate bonds, adjusted taxable inc = $10,000) 3,175 In the beginning of the year, Bob took a trip to Arizona to attend a construction-related seminar. He spent 4 days attending the seminar and 3 days visiting his sister-in-law. He had the following expenses, which are not included in the above travel expense. Airfare $ 800 Hotel ($200 per night) $1400 Meals ($40 per day) $ 280 Bob owns a 2015 Acura. He started to use the Acura for his business on January 1, 2016. He drove 2,050 business miles during 2020 (he has documentation to verify) and spent $470 on parking fees. He drove the vehicle for a total of 10,000 miles during the year (7,950 personal miles). He also has access to another vehicle that he can use for personal purposes. GPE had the following fixed assets in service: Item Life of asset Date Purchased Amount Construction equipment 7 years 05/31/2018 $525,000 Office furniture 7 years 02/03/2019 $11,250 Used delivery truck 5 years 08/17/2019 15,000 Machinery 7 years 10/22/2019 545,000 Computers 5 years 03/31/2020 380,000 Assembly equipment 7 years 08/15/2020 875,000 Storage building (new build) 39 years 11/13/2011 1,550,000 GPE would like to take advantage of 179 expensing, but elects out of bonus depreciation, for purchases in 2020. The company has not taken either of these additional depreciation options in prior years. GPE listed some construction equipment for sale. The equipment, purchased on 05/31/2018, sold on 03/15/2020 for $418,000. They also sold the machinery, purchased on 10/22/2019, on 12/15/2020 for $460,000.