this is for an advanced tax accounting course

Required information The following information applies to the questions displayed below WAR (We Are Richj has been in business since 1985 WAR is an accrual method sole proprietorship that deals in the manufacturing and wholesaling of various types of golf equipment Hack & Hack CPAs has filed accurate tax returns for WAR's owner since WAR opened its doors. The managing partner of Hack & Hack (Jack) has gotten along very well with the owner of WAR-Mr. Someday Woods (single). However, in early 2018, Jack Hack and Someday Woods played a round of golf and Jack, for the first time ever, actually beat Mr. Woods. Mr. Woods was so upset that he fired Hack & Hack and has hired you to compute his 2018 taxable income. Mr. Woods was able to provide you with the following information from prior tax returns. The taxable income numbers reflect the results from all of Mt. Wood's activities except for the items separately stated. You will need to consider how to handle the separately stated items for tax purposes. Also, note that the 2013-2017 numbers do not reflect capital loss carryovers 20132014 2015 2016 2017 Ordinary taxable incone Other itens not included in ordinary taxable income: Net gain (loss) on disposition of $1231 assets Net long-term capital gain (loss) 4,000 $ 2,000 $94,000 $170,000 $250,e0e s3,00010,000 s (15,e00) $1,000 $(7,000) s (6,e00) on dispostion of capital assets s (7,000) In 2018, Mr. Woods had taxable income in the amount of $480.000 before considering the following events and transactions that transpired in 2018: a. On January 1, 2018, WAR purchased a plot of land for $100.000 with the intention of creating a driving range where b On August 17, 2018. WAR sold its goif testing machine, "Tron Byron" and replaced it with a new machine "Iron Tiger c. In the months October through December 2018, WAR sold various assets to come up with the funds necessary to patrons could test their new golf equipment. WAR never got around to building the driving range, instead, WAR sold the land on October 1, 2018, for $40.000 Iron Byron" was purchased and installed for a total cost of $22.000 on February 5, 2014. At the time of sale, "Iron Byron" had an adjusted tax basis of $4,000. WAR sold "iron Byron" for $25,000 invest in WAR's latest and greatest invent three-dimple golf bail. Data on these assets are provided below invest in WAR's latest and greatest invention-the three-dimple golf ball. Data on these assets are provided below Placed in Service (or purchased) Initial Accunulated Selling Soneday's black leather sofa (used in office) Someday's office chair Marketable securities Land held for investment Other investment property 1e/16/18 s 3,e00 540 2.980 11/8/18$8,000 $3,008 $ 4,000 12/1/18 12,000s 28,889 11/29/1845,ee0$ 48,000 10/15/18 s 10,e0se8,800 11/38/16 d. Finally, on May 7, 2018. WAR decided to sell the building where it tested its plutonium shaft, lignite head drivers. WAR purchased the building on January 5, 2006, for $190,000 ($170,000 for the building. $20,000 for the land). At the time of the sale, the accumulated depreciation on the building was $50,000. WAR sold the building (with the land) for $300.000 The fair market value of the land at the time of sale was $45,000. (Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Loss amounts should be indicoted by a minus sign.) Compute Mr. Woods's taxable income after taking into account the transactions described above. $1231 income/Loss) Tem Short-long Term LT 28% LT 25% | 0/15/ Gain/Loss) Recapture Description Land Iron Byron Sofa Chair Marketable securities Total 60,000) (60.000 21.000 440 (1000 18,000 3,000 c1 (1.000 8,000 3,000 2.000) 8.000 3 000 (2.000 8,000 3,000 (2.000) 135,000 25,000 129.440 c4Land-for investment c5 Investment property Building Land 0135 000 25 000 18,440 162.000 d1 (60 000) 9.000 9,000 Pre 123of 3lE Next 51231 netting Step1 - depreciation recapture ordinary income Step 2-51231 G/L netting gains/losses exclusive of 51250 Unrecap $1250 Step 3- lookback rule apply to unrecap $1250 frst Ordinary income Remaining unrecap 1250 Remaining gain-0/15/20 8 440 162.000 (60.000)O 9 9,000 0 9,000 Capital gain netting Step 1 Step 2 Step 3 Step 4 Subtotal Step 5 Step 6 Step 7 Subtotal Step 8 Step 9 Total Taxable Income: Before transactions Ordinary income LTCG @ 25% LTCG @ 0/15/20% Taxable income $ 480,000 $ 480,000 Tax Liability: Tax on ordinary income Tax on 25% Gain Tax on 0/15/2096 Gain (taxed at 20%) Total tax liability