Tom operates a sole proprietorship. He had taxable income of $64,088 in 2021 and $27,560 in 2022 from his business before accounting for the events described below. Tom acquired a delivery van for $30,297 on September 3, 2018, and immediately placed the van into service in his business. He has never used the van for personal purposes. Tom bought a desk at a cost of $1,600. He placed the desk into service in the business on July 16, 2020. Tom subsequently sold the desk for $2,550 on October 3, 2022. Tom paid $750 for a computer server, which he placed into service in his business on January 9, 2021. He has used the server exclusively in his business (i.e., no personal use). Tom spent $325,000 on a warehouse, which he placed into service in his business on January 12, 2021. Tom purchased a retail store building (Old Store) for $176,400 and placed the store into service in his business on August 5, 2019. On February 13, 2021, Tom exchanged the Old Store for a different store (Replacement Store) in a transaction that qualified as a like-kind exchange. On the date of the exchange, the Old Store had a fair market value of $172,481 and the Replacement Store had a fair market value of $174,831. As part of the exchange, the other party gave Tom a computer monitor with a fair market value of $750 and Tom gave the other party $3,100 in cash. The other party had used both the Replacement Store and the computer monitor in its business and, since the date of the exchange, Tom has used both the Replacement Store and the computer monitor in his business. On May 12, 2021, Tom placed a tablet computer into service in his business. Tom paid $1,500 for the tablet. He has documentation to show that, during 2021, he used the tablet 100% of the time for business purposes. During 2022, Tom used the tablet 100% of the time for business purposes too. On September 10, 2022, Tom placed a hole-punch machine into service. Tom paid $626 to purchase the machine. Tom placed a sander, which cost $647, into service on October 12, 2022. Finally, Tom placed a backhoe into service in his business on November 17, 2022. The backhoe cost $17,000. The cost of the backhoe is the only amount (from either 2021 or 2022) for which Tom made a section 179 election. Required: Explain what taxable income Tom had from his business in 2021 and 2022 after accounting for the events described above. For purposes of this requirement, assume that (1) prior to calendar year 2020, Tom took bonus depreciation when allowed; (2) Tom chose not to take bonus depreciation for any assets placed into service during calendar years 2020, 2021, and 2022; and (3) other than making a section 179 election with respect to the backhoe, Tom has not made any other tax elections (e.g., he has not elected to deduct costs under the de minimis safe harbor rules for low-cost personal property).