Question: please include work i would like to understand! thank you Problem 07-32 (Algo) (LO 7-5, 7-9) On April 23, Mrs. Yu purchased a taxi business
Problem 07-32 (Algo) (LO 7-5, 7-9) On April 23, Mrs. Yu purchased a taxi business from Mr. Mann for a $54,000 lump-sum price. The business consisted of a two-year-old taxicab worth $16,740, 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 $37,090. 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 $17,400. Assume Mrs. Yu wants to minimize taxable income without bonus depreciation
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