18 Problem 07-32 (Static) [LO 7-5, 7-9] 0.95 On April 23, Mrs. Yu purchased a taxi business from Mr. Mann for a $60,000 lump-sum price. The business consisted of a two-year-old points taxicab worth $19,000, Mr. Mann's license to operate a taxi business in Baltimore, his list of regular customers, and his registered business name "On Time Any Time Taxi." Mrs. Yu operated the business from April 24 through the end of the year. Use Table 7-2. Required: a. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,890. eBook Assume Mrs. Yu wants to minimize taxable income. b. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $17,100. Assume Mrs. Yu wants to minimize taxable income but does not wish to take bonus depreciation. Print Leave no cells blank - be certain to enter "O" wherever required. References Complete this question by entering your answers in the tabs below. Required A Required B Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,890. Assume Mrs. Yu wants to minimize taxable income. Note: Do not round intermediate calculations. Taxable income Required A Required B Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $17,100. Assume Mrs. Yu wants to minimize taxable income without bonus depreciation. Note: Do not round intermediate calculations. 17 Problem 07-30 (Static) [LO 7-9] 0.95 Mr. Zan, a calendar year taxpayer, opened a new car wash. Prior to the car wash's grand opening on October 8, Mr. Zan incurred points various start-up expenditures (rent, utilities, employee salaries, supplies, and so on). In each of the following cases, compute Mr. Zan's first-year deduction with respect to these expenditures. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Required: eBook a. The start-up expenditures totaled $4,750. b. The start-up expenditures totaled $27,320. c. The start-up expenditures totaled $53,120. Print d. The start-up expenditures totaled $88,380. Amount References a. Deduction b. Deduction c. Deduction d. DeductionProblem 07-28 (Static) [LO 7-9] Ajax, Incorporated was formed on April 25 and elected a calendar year for tax purposes' Ajax paid $11,200 to the attorney who drew up the articles of incorporation and $5,100 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. Required: To what extent can Ajax deduct its $16,300 organizational costs on its first tax return? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. 20 Problem 07-35 (Static) [LO 7-4, 7-5, 7-9, 7-11] 0.95 TGW, a calendar year corporation, reported $3,908,000 net income before tax on its financial statements prepared in accordance with points GAAP. The corporation's records reveal the following information: . TGW's depreciation expense per books was $448,000, and its MACRS depreciation deduction was $377,900. . TGW capitalized $678,000 indirect expenses to manufactured inventory for book purposes and $802,000 indirect expenses to manufactured inventory for tax purposes. eBook TGW's cost of manufactured goods sold was $2,557,000 for book purposes and $2,638,000 for tax purposes. . Four years ago, TGW capitalized $2,250,000 goodwill when it purchased a competitor's business. This year, TGW's auditors required the corporation to write the goodwill down to $1,500,000 and record a $750,000 goodwill impairment expense. Print Required: Compute TGW's taxable income. Note: Amounts to be deducted should be indicated with a minus sign. References Amount TGW's net book income before tax Adjustments: Depreciation Indirect inventory costs Cost of goods sold Book goodwill impairment expense Tax amortization of goodwill TGW's taxable income