WAR $($We Are Rich$)$ has been in business since $1989.$ 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 $2022,$ 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 $2022$ 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 $20172021$ numbers do not reflect capital loss carryovers.

$20172018201920202021$

Ordinary taxable income $ $4,000$ $ $2,000$ $ $94,000$ $ $170,000$ $ $250,000$

Other items not included in ordinary taxable income:

Net gain $($loss$)$ on disposition of $1231$ assets $ $3,00010,000$ $ $(6,000)$

Net long$-$term capital gain $($loss$)$ on disposition of capital assets $ $(15,000)$ $ $1,000$ $ $(7,000)$ $ $(7,000)$

In $2022,$ Mr$.$ Woods had taxable income in the amount of $$480,000$ before considering the following events and transactions that transpired in $2022$:

On January $1,2022,$ WAR purchased a plot of land for $$100,000$ with the intention of creating a driving range where patrons could test their new golf equipment. WAR never got around to building the driving range; instead, WAR sold the land on October $1,2022,$ for $$40,000.$

On August $17,2022,$ 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 $$22,000$ on February $5,2018.$ At the time of sale, "Iron Byron" had an adjusted tax basis of $$4,000.$ WAR sold "Iron Byron" for $$25,000.$

In the months October through December $2022,$ 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$)4/4/2110/16/22$ $ $3,000$ $ $540$ $ $2,900$

Someday's office chair $3/1/2011/8/228,0003,0004,000$

Marketable securities $2/1/1912/1/2212,000020,000$

Land held for investment $7/1/2111/29/2245,000048,000$

Other investment property $11/30/2010/15/2210,00008,000$

Finally, on May $7,2022,$ WAR decided to sell the building where it tested its plutonium shaft, lignite head drivers. WAR purchased the building on January $5,2010,$ 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.$Compute Mr$.$ Woods's tsx lisbility for the year $($Ignore sny net Investment income tax for the yesr snd assume the $20$ percent qualfied

business income deduction is Included in tsxsble Income before these tronssctions.$]$ Use Tax rate schedules, dividends snd caplts

goina tox rates for reference.