Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2014:

Complete Thom€™s 2014 Form 4562 and Schedule C of Form 1040, assuming Thom elects to expense the maximum amount possible under Sec. 179 but elects out of bonus depreciation.

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Sales (less returns and allowances) Cost of goods sold Office expenses Depreciation* Legal services Salary expenses Travel expenses Repair expenses Information related to Mr. Jones's depreciation: Cost of office furniture acquired and placed in service on April 15, 2014 (7-year recovery). Cost of other property acquired and placed in service on August 1, 2014 S1,250,000 500,000 10,000 4,000 36,000 30,000 20,000 $480,000 6,000 5-year recovery property (computers-not listed property) 54,000 7-year recovery property (equipment) Depreciation on assets purc hased prior to 2014 28,000