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 WARs owner since WAR opened its doors The managing partner of Hack Hack (Jack) has gotten along very well with the owner of WARMr 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 20162020 numbers do not reflect capital loss carryovers 2016 2017 2018 2019 2020 Ordinary taxable income $ 4,340 $ 2,170 $ 97,995 $ 177,225 $ 260,625 Other items not included in ordinary taxable income Net gain (loss) on disposition of 1231 assets $ 3,510 10,850 $ (7,020) Net long term capital gain (loss) on disposition of capital assets $ (16,275) $ 1,170 $ (18,400) $ (8,700) In 2021, Mr Woods had taxable income in the amount of $514,000 before considering the following events and transactions that transpired in 2021 a On January 1, 2021, WAR purchased a plot of land for $108,500 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 $43,400 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 $25,400 on February 5, 2017 At the time of sale, Iron Byron had an adjusted tax basis of $7,400 WAR sold Iron Byron for $33,500 c In the months October through December 2021, WAR sold various assets to come up with the funds necessary to invest in WARs latest and greatest inventionthe three dimple golf ball Data on these assets are provided below Asset Placed in Service (or purchased) Sold Initial Basis Accumulated Depreciation Selling Price Somedays black leather sofa (used in office) 4 4 20 10 16 21 $ 3,680 $ 710 $ 3,410 Somedays office chair 3 1 19 11 8 21 9,360 3,340 4,850 Marketable securities 2 1 18 12 1 21 14,040 0 21,700 Land held for investment 7 1 20 11 29 21 53,500 0 55,650 Other investment property 11 30 19 10 15 21 18,500 0 14,800 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 $232,500 ($204,000 for the building, $28,500 for the land) At the time of the sale, the accumulated depreciation on the building was $58,500 WAR sold the building (with the land) for $351,000 The fair market value of the land at the time of sale was $53,500 (Do not round intermediate computations Round your final answers to the nearest whole dollar amount Loss amounts should be indicated by a minus sign ) Comprehensive Problem 11 73 Part 3 (Algo) Complete Mr Woodss Form 8949, 1040 Schedule D and Form 4797 (use the most current version of these schedules) to be attached to his Form 1040 Assume that asset bases are not reported to the IRS Mr Woodss social security number 412 34 5670 (Input all values as positive numbers unless instructed otherwise on the forms Use 2021 tax rules regardless of year on tax form ) Form 4797 Page 1 and 2 see instructions c Subtract line 26 a from line 24 If residential rental property or line 24 isn't more than line 26a, skip lines 26d and 26e d Additional depreciation after 1969 and before 1976 e Enter the smaller of line 26c or 26d f Section 291 amount (corporations only) g Add lines 26b, 26e, and 26f 27 If section 1252 property Skip this section if you didn't dispose of farmland or if this form is being completed for a partnership a Soil, water, and land clearing expenses b Line 27a multiplied by applicable percentage see instructions Summary of Part III Gains Complete property columns A through D through line 29b before going to line 30 30 Total gains for all properties Add property columns A through D, line 24 31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b Enter here and on line 13 32 Subtract line 31 from line 30 Enter the portion from casualty or theft on Form 4684, line 33 Enter the portion from other than casualty or theft on Form 4797, line 6 begin tabular r r hline 30 hline 31 0 hline 32 0 hline end tabular Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50 or Less (see instructions)

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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

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 WARs owner since WAR opened its doors. The managing partner of Hack & Hack (Jack) has gotten along very well with the owner of WARMr. 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 20162020 numbers do not reflect capital loss carryovers.

	2016	2017	2018	2019	2020
Ordinary taxable income	$ 4,340	$ 2,170	$ 97,995	$ 177,225	$ 260,625
Other items not included in ordinary taxable income:
Net gain (loss) on disposition of 1231 assets	$ 3,510	10,850		$ (7,020)
Net long-term capital gain (loss) on disposition of capital assets	$ (16,275)	$ 1,170	$ (18,400)		$ (8,700)

In 2021, Mr. Woods had taxable income in the amount of $514,000 before considering the following events and transactions that transpired in 2021:

a. On January 1, 2021, WAR purchased a plot of land for $108,500 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 $43,400.
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 $25,400 on February 5, 2017. At the time of sale, Iron Byron had an adjusted tax basis of $7,400. WAR sold Iron Byron for $33,500.
c. In the months October through December 2021, WAR sold various assets to come up with the funds necessary to invest in WARs latest and greatest inventionthe three-dimple golf ball. Data on these assets are provided below:

Asset	Placed in Service (or purchased)	Sold	Initial Basis	Accumulated Depreciation	Selling Price
Somedays black leather sofa (used in office)	4/4/20	10/16/21	$ 3,680	$ 710	$ 3,410
Somedays office chair	3/1/19	11/8/21	9,360	3,340	4,850
Marketable securities	2/1/18	12/1/21	14,040	0	21,700
Land held for investment	7/1/20	11/29/21	53,500	0	55,650
Other investment property	11/30/19	10/15/21	18,500	0	14,800

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 $232,500 ($204,000 for the building, $28,500 for the land). At the time of the sale, the accumulated depreciation on the building was $58,500. WAR sold the building (with the land) for $351,000. The fair market value of the land at the time of sale was $53,500. (Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Loss amounts should be indicated by a minus sign.)

Comprehensive Problem 11-73 Part 3 (Algo)

Complete Mr. Woodss Form 8949, 1040 Schedule D and Form 4797 (use the most current version of these schedules) to be attached to his Form 1040. Assume that asset bases are not reported to the IRS.

Mr. Woodss social security number: 412-34-5670

(Input all values as positive numbers unless instructed otherwise on the forms. Use 2021 tax rules regardless of year on tax form.)

Form 4797 Page 1 and 2. see instructions. c Subtract line 26 a from line 24 . If residential rental property or line 24 isn't more than line 26a, skip lines 26d and 26e d Additional depreciation after 1969 and before 1976 e Enter the smaller of line 26c or 26d f Section 291 amount (corporations only) g Add lines 26b, 26e, and 26f 27 If section 1252 property: Skip this section if you didn't dispose of farmland or if this form is being completed for a partnership a Soil, water, and land clearing expenses b Line 27a multiplied by applicable percentage. see instructions Summary of Part III Gains. Complete property columns A through D through line 29b before going to line 30. 30 Total gains for all properties. Add property columns A through D, line 24 31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13 32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty or theft on Form 4797, line 6 \begin{tabular}{|r|r|} \hline 30 & \\ \hline 31 & 0 \\ \hline & \\ 32 & 0 \\ \hline \end{tabular} Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions)