Unsure how to work this question. This website has an error of marking correct answers wrong, so I do not know what is truely wrong

WAR (We Are Rich) has been in business since 1988, 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 2021, Jack Hack and Someday Woods played a round of golf, and Jack, for the first time ever, beat Mr. Woods. Mr. Woods was so upset that he fired Hack & Hack and has hired you to compute his 2021 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 Mr. Woods'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 2016- 2020 numbers do not reflect capital loss carryovers. 2016 $ 4,140 2017 $ 2,070 2018 $ 95,645 2019 $ 172,975 2020 $ 254,375 Ordinary taxable income Other items not included in ordinary taxable income : Net gain (loss) on disposition of $1231 assets Net long-term capital gain (loss) on disposition of capital $ 3,210 10,350 $ (6,420) assets $ (15,525) $ 1,070 $ (7,245) $ (7,245) In 2021, Mr. Woods had taxable income in the amount of $494,000 before considering the following events and transactions that transpired in 2021 a. On January 1, 2021, WAR purchased a plot of land for $103,500 with the intention of creating a driving range where patrons could test their new golf equipment. WAR never got around to building the driving range; Instead, WAR sold the land on October 1, 2021, for $41.400. b. On August 17, 2021. WAR sold its golf testing machine, "Iron Byron" and replaced it with a new machine. "Iron Tiger." "Iron Byron" was purchased and installed for a total cost of $23,400 on February 5, 2017 At the time of sale, "ron Byron" had an adjusted tax basis of $5,400. WAR sold "Iron Byron" for $28,500. c. In the months October through December 2021. WAR sold various assets to come up with the funds necessary to Invest in WAR's latest and greatest invention-the three-dimple golf ball Data on these assets are provided below the land on October 1, 2021, for $41,400 b. On August 17, 2021, WAR sold its golf testing machine, "Iron Byron," and replaced it with a new machine, "Iron Tiger." "Iron Byron" was purchased and installed for a total cost of $23,400 on February 5, 2017. At the time of sale, "Iron Byron" had an adjusted tax basis of $5,400. WAR sold "Iron Byron" for $28,500. c. In the months October through December 2021, WAR sold various assets to come up with the funds necessary to 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) Sold Initial Basis Accumulated Depreciation Selling Price Asset Someday's black leather sofa (used in office) Someday's office chair Marketable securities Land held for investment Other investment property 4/4/20 3/1/19 2/1/18 7/1/20 11/30/19 10/16/21 11/8/21 12/1/21 11/29/21 10/15/21 $ 3,280 8,560 12,840 48,500 13,500 $ 610 3,140 e e $ 3, 110 4,350 20,700 51,150 10,888 d. Finally, on May 7, 2021, WAR decided to sell the building where it tested its plutonium shaft, lignite head drivers. WAR purchased the building on January 5, 2009, for $207,500 ($184,000 for the building, $23,500 for the land). At the time of the sale, the accumulated depreciation on the building was $53,500 WAR sold the building (with the land) for $321,000. The fair market value of the land at the time of sale was $48,500. (Do not round Intermediate computations. Round your final answers to the nearest whole dollar amount. Loss amounts should be indicated by a minus sign.) Term LT 25% Depreciation Recapture 00 18,000 Ordinary income LOS (62.1001 0 0 LT 0/15/20% 00 40 Description a Land b Iron Byron c! Sofa 2 Chair 03 Marktable securities of Land for investment Investment property 01 Building d2 Land $1231 0 5.100 og (1.070) 0 0 00 Gair Loss) (02.100) 23.100 440 (1.070) 7.300 2,650 (2.700) 142.000 25,000 135,180 OOOOOO o 0 o o 0 0 18.440 Short Long Term Total LT 28% 08 03 0 o OC 0 0 0 0 0 0 o 0 0 (2.700) 0 o 0 0 0 12.700) 0 OX 0 0 0 0 OO. TOOOO oooooooo OOOOOO 0 0 O 0 0 0 0 0 0 0 X 0 88500 25.000 117,530 2006 12.700) 0 (62.100) (2.700) 00 3 10.440 51231 netting Step.depreciation recapture ordinary income Step 2 - 5123 GL netting gaisses exclusive of 1250 - Unrecap 1250 Swp.lookback rulo - apply to recap 51250 first Ordinary income Romaininguri 51250 Pemaining gain 0/15/20 117530 53.500 03 0% OX 0X 117530 53,500 0$ 0 12.700) 18440 (43.600) 0 0 53,500 2,700) Required information Romaining unrecap 51250 Remaining gain-0/15/20 OX 53 500 03 003 (2.700) 083 117,530 18.440 (43,660) 0 0 53,500 Capital gain notting Long term capital loss carryover Reclassified 08 03 0 (2,700) 0 Answer is not complete. Taxable income Before transactions Ordinary income/oss LTCG 25% LTCG G0/15/20% Taxable income $ 494,000 (37.240) $ 455.780 WAR (We Are Rich) has been in business since 1988, 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 2021, Jack Hack and Someday Woods played a round of golf, and Jack, for the first time ever, beat Mr. Woods. Mr. Woods was so upset that he fired Hack & Hack and has hired you to compute his 2021 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 Mr. Woods'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 2016- 2020 numbers do not reflect capital loss carryovers. 2016 $ 4,140 2017 $ 2,070 2018 $ 95,645 2019 $ 172,975 2020 $ 254,375 Ordinary taxable income Other items not included in ordinary taxable income : Net gain (loss) on disposition of $1231 assets Net long-term capital gain (loss) on disposition of capital $ 3,210 10,350 $ (6,420) assets $ (15,525) $ 1,070 $ (7,245) $ (7,245) In 2021, Mr. Woods had taxable income in the amount of $494,000 before considering the following events and transactions that transpired in 2021 a. On January 1, 2021, WAR purchased a plot of land for $103,500 with the intention of creating a driving range where patrons could test their new golf equipment. WAR never got around to building the driving range; Instead, WAR sold the land on October 1, 2021, for $41.400. b. On August 17, 2021. WAR sold its golf testing machine, "Iron Byron" and replaced it with a new machine. "Iron Tiger." "Iron Byron" was purchased and installed for a total cost of $23,400 on February 5, 2017 At the time of sale, "ron Byron" had an adjusted tax basis of $5,400. WAR sold "Iron Byron" for $28,500. c. In the months October through December 2021. WAR sold various assets to come up with the funds necessary to Invest in WAR's latest and greatest invention-the three-dimple golf ball Data on these assets are provided below the land on October 1, 2021, for $41,400 b. On August 17, 2021, WAR sold its golf testing machine, "Iron Byron," and replaced it with a new machine, "Iron Tiger." "Iron Byron" was purchased and installed for a total cost of $23,400 on February 5, 2017. At the time of sale, "Iron Byron" had an adjusted tax basis of $5,400. WAR sold "Iron Byron" for $28,500. c. In the months October through December 2021, WAR sold various assets to come up with the funds necessary to 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) Sold Initial Basis Accumulated Depreciation Selling Price Asset Someday's black leather sofa (used in office) Someday's office chair Marketable securities Land held for investment Other investment property 4/4/20 3/1/19 2/1/18 7/1/20 11/30/19 10/16/21 11/8/21 12/1/21 11/29/21 10/15/21 $ 3,280 8,560 12,840 48,500 13,500 $ 610 3,140 e e $ 3, 110 4,350 20,700 51,150 10,888 d. Finally, on May 7, 2021, WAR decided to sell the building where it tested its plutonium shaft, lignite head drivers. WAR purchased the building on January 5, 2009, for $207,500 ($184,000 for the building, $23,500 for the land). At the time of the sale, the accumulated depreciation on the building was $53,500 WAR sold the building (with the land) for $321,000. The fair market value of the land at the time of sale was $48,500. (Do not round Intermediate computations. Round your final answers to the nearest whole dollar amount. Loss amounts should be indicated by a minus sign.) Term LT 25% Depreciation Recapture 00 18,000 Ordinary income LOS (62.1001 0 0 LT 0/15/20% 00 40 Description a Land b Iron Byron c! Sofa 2 Chair 03 Marktable securities of Land for investment Investment property 01 Building d2 Land $1231 0 5.100 og (1.070) 0 0 00 Gair Loss) (02.100) 23.100 440 (1.070) 7.300 2,650 (2.700) 142.000 25,000 135,180 OOOOOO o 0 o o 0 0 18.440 Short Long Term Total LT 28% 08 03 0 o OC 0 0 0 0 0 0 o 0 0 (2.700) 0 o 0 0 0 12.700) 0 OX 0 0 0 0 OO. TOOOO oooooooo OOOOOO 0 0 O 0 0 0 0 0 0 0 X 0 88500 25.000 117,530 2006 12.700) 0 (62.100) (2.700) 00 3 10.440 51231 netting Step.depreciation recapture ordinary income Step 2 - 5123 GL netting gaisses exclusive of 1250 - Unrecap 1250 Swp.lookback rulo - apply to recap 51250 first Ordinary income Romaininguri 51250 Pemaining gain 0/15/20 117530 53.500 03 0% OX 0X 117530 53,500 0$ 0 12.700) 18440 (43.600) 0 0 53,500 2,700) Required information Romaining unrecap 51250 Remaining gain-0/15/20 OX 53 500 03 003 (2.700) 083 117,530 18.440 (43,660) 0 0 53,500 Capital gain notting Long term capital loss carryover Reclassified 08 03 0 (2,700) 0 Answer is not complete. Taxable income Before transactions Ordinary income/oss LTCG 25% LTCG G0/15/20% Taxable income $ 494,000 (37.240) $ 455.780