Alpha Corp is a calendar year accrual method entity for financial reporting and tax purposes. In $2024,$ Alpha Corp completed a number of transactions involving the sale of assets and pays a $21\%$ flat tax rate. Prior to considering these asset sale transactions, Alpha Corp recorded $$257,000$ in net incomefor tax purposes. In addition, Alpha Corp incurred $$7,000$ of losses on the sale of Section $1231$ property last year and $$36,000$ in net capital losses two years ago. The information below provides additional details about the asset sale transactions during the year.

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On January $23$rd$,$ the board of directors of Omega Corp announced that the company was bankrupt and owners of the stock should consider it worthless. Alpha Corp owns $5\%$ of the outstanding shares of Omega Corp, which it purchased for $$29,000($more than a year ago$).$

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On April $4$th$,$ Alpha Corp sold Truck $1$ for $$43,000.$ The purchaser also agreed to take over the note on Truck $1$ which had $58,000$ in principal On May $15$th$,$ Alpha Corp sold Truck $2$ for $529,500$ plus $$3,000$ worth of industrial cleaning supplies to a person wha owns $90\%$ of all Alpha Corp stock. Alpha Corp paid $$46,000$ for the truck $($morethan a year ago$)$ and had accumulated $$12,000$ in depreciation by the date of the sale. The truck was actively used in the operation of Alpha Corp.

On June $28$th$,$ Alpha Corp sold Building $1($a warehouse$)$ and Land $1$ for a total of $$630,000.$ Alpha had paid a total of $$730,000$ for the two assets $($morethan a year ago$).$ For this assignment, treat the transaction as it it is two separate sales as described below:

$1)$ The buyer paid $5500,000$ for Building $1.$ Alpha Corp originally paid $$560,000$ for Building $1$ and had accumulated $$160,000$ in MACRS $($straight line$)$ depreciation by the date of the sale. The building was actively used in the operation of Alpha Carp.

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$2)$ The buyer paid $$130,000$ for Land $1,$ Alpha Corp originally paid $5170,000$ for the land. The land was actively used in the

operation of Alpha corp.On October $22$nd$,$ Alpha Corp sold Machine $1$ for $$63,000.$ Dueto a shortage in the chips used to make Machine $1,$ Alpha Corp was able to sell the machine for more than it had originally paid even though it is a depreciable asset. Alpha Company used the proceeds from the sale to pay off the $$26,000$ note it had on Machine $1.$ Alpha Corp originally paid $$59,000$ for Machine $1($more than a year ago$)$ and had accumulated $$44,000$ in depreciation by the date of the sale. Machine $1$ was actively used in the operation of Alpha Corp.

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On December $3$rd$,$ Alpha Corp sold Land $2$ for $$146,000.$ The land was purchased $20$ years ago for $$140,000$ in the hopes it would appreciate $-$ in value.

In April, an intern had accidentally purchased $900$ cases of paper instead of $90$ due to a typing error and the paper company would not accept a return. On December $21$st$,$ Alpha Corp sold $810$ cases of printer paper for $$6,800.$ Alpha agreed to receive $$4,000$ up front and the rest of the purchase price in $6$ months, with no interest. The cases of paper were originally purchased at $$7$ per case. For tax purposes, Alpha Corp capitalizes the costs of supplies and expenses them as used $($i$.$e$.,$ these cases of paper were capitalized with a basis equal to their original purchase price$).$