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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 $ $4,320$ $ $2,160$ $ $97,760$ $ $176,800$ $ $260,000$

Other items not included in ordinary taxable income:

Net gain $($loss$)$ on disposition of $1231$ assets $ $3,48010,800$ $ $(6,960)$

Net long$-$term capital gain $($loss$)$ on disposition of capital assets $ $(16,200)$ $ $1,160$ $ $(17,700)$ $ $(8,600)$

In $2022,$ Mr$.$ Woods had taxable income in the amount of $$512,000$ before considering the following events and transactions that transpired in $2022$:

On January $1,2022,$ WAR purchased a plot of land for $$108,000$ with the intention of creating a driving range where patrons could test their new golf equipment. WAR never got around to building the driving range; instead, WAR sold the land on October $1,2022,$ for $$43,200.$

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 $$25,200$ on February $5,2018.$ At the time of sale, "Iron Byron" had an adjusted tax basis of $$7,200.$ WAR sold "Iron Byron" for $$33,000.$

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$)4/4/2110/16/22$ $ $3,640$ $ $700$ $ $3,380$

Someday's office chair $3/1/2011/8/229,2803,3204,800$

Marketable securities $2/1/1912/1/2213,920021,600$

Land held for investment $7/1/2111/29/2253,000055,200$

Other investment property $11/30/2010/15/2218,000014,400$

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 $$230,000($$$202,000$ for the building, $$28,000$ for the land$).$ At the time of the sale, the accumulated depreciation on the building was $$58,000.$ WAR sold the building $($with the land$)$ for $$348,000.$ The fair market value of the land at the time of sale was $$53,000.$

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.

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.

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