Photo Tonight, a film-developing and camera-repair franchise, began business on January 1, 2023. In the process...

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Photo Tonight, a film-developing and camera-repair franchise, began business on January 1, 2023. In the process of beginning operations, it incurred the following capital expenditures. Developing equipment Furniture and fixtures Small tools (under $500) Franchise (expires in 20 years) Incorporation costs Pickup truck Leasehold improvements (10-year lease) $ 95,000 45,000 30,000 88,000 8,000 18,000 36,000 The business was immediately successful and generated substantial profits for the years ended December 31, 2023 and 2024. In 2024, the truck was traded in for a larger unit costing $ 20,300. A value of $7,000 was assigned to the old truck when it was traded in. In 2025, the owner was forced to leave the business due to illness. As a result, the assets were valued and sold on December 31, 2025, for the following values. Developing equipment Furniture and fixtures Small tools Franchise Incorporation costs Pickup truck Leasehold improvements Goodwill Required: $75,000 15,000 16,000 90,000 -0- 15,000 15,000 20,000 Complete the table below to calculate the effect of all these transactions on net income for tax purposes for the 2023, 2024, and 2025 taxation years. Assume none of the assets are designated immediate expensing property. (Use a minus sign (-) when entering numbers that reduce UCC.) Photo Tonight, a film-developing and camera-repair franchise, began business on January 1, 2023. In the process of beginning operations, it incurred the following capital expenditures. Developing equipment Furniture and fixtures Small tools (under $500) Franchise (expires in 20 years) Incorporation costs Pickup truck Leasehold improvements (10-year lease) $ 95,000 45,000 30,000 88,000 8,000 18,000 36,000 The business was immediately successful and generated substantial profits for the years ended December 31, 2023 and 2024. In 2024, the truck was traded in for a larger unit costing $ 20,300. A value of $7,000 was assigned to the old truck when it was traded in. In 2025, the owner was forced to leave the business due to illness. As a result, the assets were valued and sold on December 31, 2025, for the following values. Developing equipment Furniture and fixtures Small tools Franchise Incorporation costs Pickup truck Leasehold improvements Goodwill Required: $75,000 15,000 16,000 90,000 -0- 15,000 15,000 20,000 Complete the table below to calculate the effect of all these transactions on net income for tax purposes for the 2023, 2024, and 2025 taxation years. Assume none of the assets are designated immediate expensing property. (Use a minus sign (-) when entering numbers that reduce UCC.)