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.

$20182019202020212022$

Ordinary taxable income $ $4,300$ $ $2,150$ $ $97,525$ $ $176,375$ $ $259,375$

Other items not included in ordinary taxable income:

Net gain $($loss$)$ on disposition of $1231$ assets $ $3,45010,750$ $ $(6,900)$

Net long$-$term capital gain $($loss$)$ on disposition of capital assets $ $(16,125)$ $ $1,150$ $ $(17,000)$ $ $(8,500)$

In $2023,$ Mr$.$ Woods had taxable income in the amount of $$510,000$ before considering the following events and transactions that transpired in $2023$:

On January $1,2023,$ WAR purchased a plot of land for $$107,500$ with the intention of creating a driving range where patrons could test their new golf equipment. WAR never got around to building the driving range; instead, WAR sold the land on October $1,2023,$ for $$43,000.$

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 $$25,000$ on February $5,2019.$ At the time of sale, "Iron Byron" had an adjusted tax basis of $$7,000.$ WAR sold "Iron Byron" for $$32,500.$

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$)4/4/2210/16/23$ $ $3,600$ $ $690$ $ $3,350$

Someday's office chair $3/1/2111/8/239,2003,3004,750$

Marketable securities $2/1/2012/1/2313,800021,500$

Land held for investment $7/1/2211/29/2352,500054,750$

Other investment property $11/30/2110/15/2317,500014,000$

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 $$227,500($$$200,000$ for the building, $$27,500$ for the land$).$ At the time of the sale, the accumulated depreciation on the building was $$57,500.$ WAR sold the building $($with the land$)$ for $$345,000.$ The fair market value of the land at the time of sale was $$52,500.$