Tom M and his wife, Donna M, are the owners of a heating oil delivery business that they operated for more than 20 years. They sold the business to a competitor on April 30, 2022, after the end of the 2021-2022 heating season. The heating oil delivery business's assets consisted solely of a customer list, service parts, oil inventory and three delivery trucks and no real property:

• Truck #1, purchased on June 15, 2020, for $80,000, cumulative depreciation of $35,000, FMV of $70,000

• Truck #2, purchased on March 20, 2018, for $45,000, cumulative depreciation of $40,000, FMV of $60,000

• Truck #3, purchased on October 15, 2018, for $40,000, cumulative depreciation of $35,000, FMV of $50,000

The business was owned by both of them with a share of 50% each. They realized net profits of $45,000 (JAN-APR, 2022) from their operations. The shareholder account balances for Tom and Donna as of Jan 1, 2022, were $0.

Their competitor, Energy Star Corp. (Buyer), paid the purchase price of $495,700 plus the value of the oil inventory at cost on the day of the closing, allocated as follows: •

Truck 1 70,000

• Truck 2 60,000

• Truck 3 50,000

• Supplies Parts (cost - $4,300) 8,200

• Restrictive Covenant* 7,500

• Goodwill 300,000

• Oil Inventory purchased at cost, generated no gain or loss

*Restrictive Covenant: As a condition of the purchase, the Buyer demanded that Tom M, Donna M, and Tom M Oil Inc. agree not to own or operate, directly or indirectly, another oil company for three years, in exchange for $7,500.

Tom M Oil Inc. ceased business as of April 30, 2022, after the sale and has distributed the proceeds to Tom and Donna in complete liquidation during 2022.

From the given problem, please help calculate whichever is possible from the following :

Ordinary business income (loss)=?

Net rental real estate income (loss)=? (if any)

Other net rental income (loss)=?

Interest income=?

5a. Ordinary dividends=?

5b. Qualified dividends=?

Royalties =?

Net short-term capital gain (loss)=?

8a. Net long-term capital gain (loss)=?

8b. Collectibles (28%) gain (loss) =?

8c . Unrecaptured section 1250 gain=?

Net section 1231 gain (loss)=?

Other income (loss) =?

Section 179 deduction?

Other deductions=?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Ordinary business income loss 45000 This is the net profit from the business operations for the period JanApr 2022 2 Net rental real esta... View the full answer