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

On April $23,$ Mrs$.$ Yu purchased a taxi business from Mr$.$ Mann for a $$51,000$ lump$-$sum price. The business consisted of a two$-$year$-$old taxicab worth $$16,320,$ 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:

Compute Mrs$.$ Yu$$s taxable income from the taxi business if her taxable income before any cost recovery deductions was $$36,970.$ Assume Mrs$.$ Yu wants to minimize taxable income.

Compute Mrs$.$ Yu$$s taxable income from the taxi business if her taxable income before any cost recovery deductions was $$12,800.$ Assume Mrs$.$ Yu wants to minimize taxable income but does not wish to take bonus depreciation.