i 10 50 382207

Thom Jones (SSN 000 00 1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2012:

Sales (less returns and allowances) $1,250,000

Cost of goods sold 500,000

Office Expenses 10,000

Depreciation ?

Legal Expenses 4,000

Salary Expenses 36,000

Travel Expenses 30,000

Repair Expenses 20,000

Information related to Mr. Jones’s depreciation:

Cost of office furniture acquired and placed in service on April 15, 2012 (7 year recovery).

Thom elected to expense the maximum amount possible under Sec. 179 and the bonus

depreciation provision. $480,000

Cost of other property acquired and placed in service on August 1, 2012:

5 year recovery property (computers not listed property) $6,000

7 year recovery property (equipment) 54,000

Depreciation on assets purchased prior to 2012: 28,000

Complete Thom’s 20102Form 4562 and Schedule C of Form 1040.