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Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022,...

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Accounting

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022, she sells the following long-term assets used in her business:

Asset Sales Price Cost Accumulated Depreciation
Building $ 234,200 $ 204,200 $ 56,200
Equipment 84,200 152,200 27,200

Lily's taxable income before these transactions is $194,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.

2022 Tax Rate Schedules

Individuals

Schedule X-Single

If taxable income is over: But not over: The tax is:
$ 0 $ 10,275 10% of taxable income
$ 10,275 $ 41,775 $1,027.50 plus 12% of the excess over $10,275
$ 41,775 $ 89,075 $4,807.50 plus 22% of the excess over $41,775
$ 89,075 $ 170,050 $15,213.50 plus 24% of the excess over $89,075
$ 170,050 $ 215,950 $34,647.50 plus 32% of the excess over $170,050
$ 215,950 $ 539,900 $49,335.50 plus 35% of the excess over $215,950
$ 539,900 $162,718 plus 37% of the excess over $539,900

Description Amount
Taxable income
Tax liability

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