Lily Tucker (single) owns and operates a bike shop as a soleproprietorship. This year,...

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Lily Tucker (single) owns and operates a bike shop as a soleproprietorship. This year, she sells the following long-term assetsused in her business. Asset sales price, cost, accumulateddepreciation is 311500, 278500, 72500. Equipment 83000,160300,30100. Lily's taxable income before these transactions is219000. What are Lily's taxable income and tax liability for theyear?

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	Sale price	Adjusted basis (Cost-Accumulated depreciation)	Capital gain / (loss)
Building	$ 311,500	$ 206,000	$ 105,500
Equipment	$ 83,000	$ 130,200	$ (47,200)
Net gain / (loss)			$ 58,300

Tax on ordinary income ($219,000-$190,150)*33%+$46,279)	$ 55,800
Tax on capital gain ($58,300*25%)	$ 14,575
Total tax liability	$ 70,375

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In: AccountingLily Tucker (single) owns and operates a bike shop as a soleproprietorship. This year, she...Lily Tucker (single) owns and operates a bike shop as a soleproprietorship. This year, she sells the following long-term assetsused in her business. Asset sales price, cost, accumulateddepreciation is 311500, 278500, 72500. Equipment 83000,160300,30100. Lily's taxable income before these transactions is219000. What are Lily's taxable income and tax liability for theyear?