Problem $07-32($Algo$)[$LO $7-5,7-9]$

On April $23,$ Mrs$.$ Yu purchased a taxi business from Mr$.$ Mann for a $$69,000$ lump$-$sum price. The business consisted of

a two$-$year$-$old taxicab worth $$22,080,$ 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 $$37,220.$ 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 $$18,400.$ Assume Mrs$.$ Yu wants to minimize taxable income but does not wish to take bonus depreciation.

Leave no cells blank $-$ be certain to enter $"0"$ wherever required.

Complete this question by entering your answers in the tabs below.

Compute Mrs$.$ Yu's taxable income from the taxi business if her taxable income before any

cost recovery deductions was $$37,220.$ Assume Mrs$.$ Yu wants to minimize taxable income.

Note: Do not round intermediate calculations.

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