Your office is picking up a new high$-$profile client and you have been assigned the task of preparing her tax estimate. Easter Bunny is a successful entrepreneur. She operates a sole proprietorship, Magic Baskets, a confectionary specializing in holiday candies and chocolates and customized gift baskets. Her business is still quite profitable, but online competition is fierce. She took out a $$200,000$ small business loan and invested $$100,000$ in new equipment to automate production. She is considering investing the remainder in more equipment next year. She was not sure how to properly account for this outflow to purchase the equipment $($because she doesn$$t know a lot about tax depreciation$)$ and is looking for your advice to provide her with the best tax answer. The other business revenues and expenditures are reported as cash inflows and outflows on her schedule. An entrepreneur at heart, she often considers new business opportunities and spent $$12,000$ looking into the acquisition of a card$/$gift shop. Ultimately, she decided that it was not a sustainable business venture, so she did not branch out. Since she is self$-$employed, she purchases health insurance coverage for herself and her triplets $$ Flopsy, Mopsy, and Cottontail. In addition to the premiums she had some out$-$of$-$pocket costs for prescriptions and co$-$pays. She has investment income from various sources $($CDs$,$ stocks, bonds etc.$)$ and sold some stocks this year. She had purchased the stock for $$30,000.$ She also took a chance investing $$85,000$ in a new small business corporation formed by her friend, Tooth Fairy. Unfortunately by the end of the year the company folded, and her investment became worthless. She has confirmed that it is Section $1244$ stock. She also received a small inheritance when her aunt died. She spent most of this on her favorite pastime $$ the local casino $$ where she had both some winnings and some losses for the year. She paid an attorney to revise her will and paid an advisor for financial planning advice. A late$-$summer hurricane damaged her home, and she spent $$25,000$ making repairs. It was not a presidential disaster area. She made the first installment of a multi$-$year $$120,000$ pledge to her alma mater to support programs for first$-$year students. This was a cash donation of $$25,000$ She divorced in $2015$ and remains single and is collecting alimony. Her triplets, who live primarily with her, are almost $16$ and will soon start thinking about college. Easter has asked you to prepare a federal income tax projection based on the information provided. She is particularly interested in advice to lower her current liability and planning ideas she should consider for the upcoming years. Your projection will be used during a meeting and discussion with her, so it should be in a user$-$friendly format, with necessary supporting details for your manager to review.