WAR $($We Are Rich$)$ has been in business since $1990.$ 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 $2023,$ 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 $2023$ 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 $20182022$ numbers do not reflect capital loss carryovers. Tax Rates for Net Capital Gains and Qualified Dividends

$*$This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table $($net capital gains and qualified dividends are included in taxable income last for this purpose$).2023$ Tax Rate Schedules

Individuals

Schedule X$-$Single

Schedule Y$-1-$Married Filing Jointly or Qualifying surviving spouse

Schedule Z$-$Head of Household

Schedule Y$-2-$Married Filing Separately

$20182019202020212022$

Ordinary taxable income $ $4,260$ $ $2,130$ $ $97,055$ $ $175,525$ $ $258,125$

Other items not included in ordinary taxable income:

Net gain $($loss$)$ on disposition of $1231$ assets $ $3,39010,650$ $ $(6,780)$

Net long$-$term capital gain $($loss$)$ on disposition of capital assets $ $(15,975)$ $ $1,130$ $ $(15,600)$ $ $(8,300)$

In $2023,$ Mr$.$ Woods had taxable income in the amount of $$475,000$ before considering the following events and transactions that transpired in $2023$:

On January $1,2023,$ WAR purchased a plot of land for $$106,500$ with the intention of creating a driving range where patrons could test their new golf equipment. WAR never got around to building the driving range; instead, WAR sold the land on October $1,2023,$ for $$42,600.$

On August $17,2023,$ 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 $$24,600$ on February $5,2019.$ At the time of sale, "Iron Byron" had an adjusted tax basis of $$6,600.$ WAR sold "Iron Byron" for $$31,500.$

In the months October through December $2023,$ 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:

Asset Placed in Service $($or purchased$)$ Sold Initial Basis Accumulated Depreciation Selling Price

Someday's black leather sofa $($used in office$)4/4/2210/16/23$ $ $3,520$ $ $670$ $ $3,290$

Someday's office chair $3/1/2111/8/239,0403,2604,650$

Marketable securities $2/1/2012/1/2313,560021,300$

Land held for investment $7/1/2211/29/2351,500053,850$

Other investment property $11/30/2110/15/2316,500013,200$

Finally, on May $7,2023,$ WAR decided to sell the building where it tested its plutonium shaft, lignite head drivers. WAR had purchased the building on January $5,2011,$ for $$222,500($$$196,000$ for the building, $$26,500$ for the land$).$ At the time of the sale, the accumulated depreciation on the building was $$56,500.$ WAR sold the building $($with the land$)$ for $$339,000.$ The fair market value of the land at the time of sale was $$51,500.$

Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Loss amounts should be indicated by a minus sign. $2.$ Compute Mr$.$ Woods's tax liability for the year. $($Ignore any net investment income tax for the year and assume the $20$ percent qualified business income deduction is included in taxable income before these transactions.$)$ Use Tax rate schedules, dividends and capital gains tax rates for reference. USE $2023$ TAX RATESAnswer is complete but not entirely correct.