The following information relates to Taylor, a single taxpayer. Taylor Widget Company Taylor conducts a small business as a sole proprietorship (not incorporated). During the current year, the following information is provided related to sale of assets held for greater than one year and used in the business: Item Sales Price Orig. Cost Depreciation Taken Other Info Computer Equipment $1,000 $3,000 $3,000 Accelerated depreciation used Straight line would have been $2,000 Manufacturing Equipment $22,000 $75,000 $75,000 Accelerated depreciation used Straight line would have been $50,000 Building $200,000 $150,000 $25,000 Straight line depreciation used Accelerated depreciation would have been $50,000 Land $100,000 $50,000 None POSSIBLE CURRENT TRANSACTIONS It is planned that during December 2012 or January 2013, Taylor will sell the last two of his investment assets (San Francisco Land and stock in XYZ.) San Francisco Land On June 12, 2004 Taylor received a gift of San Francisco land from his mother. The land had a value of $100,000 on June 12, 2004. The land had been inherited on January 12, 1988 by Taylor's mother from Taylor's grandfather. Taylor's grandfather had purchased the land in 1932 for $16,000. The land was worth $166,000 on January 12, 1988 (the date of the death of Taylor 's grandfather).The San Francisco land can be sold for $200,000 with the transaction being finalized either in December 2012 or January 2013. XYZ Stock The 500 shares of XYZ, which were acquired on January 2, 2011 for $125,000, can be sold currently for $94,000. Taylor believes that the price of these shares will stabilize through the end of this year, and possibly through January15, 2013. Before considering the above information, Taylor's estimated taxable income for 2012 is $125,000 (including $5,000 of dividend income from XYZ) and about the same for 2013.REQUIRED: A. Assuming Taylor sells the San Francisco Land and the XYZ stock in December 2012; find out Taylor's 2012 taxable income and tax liability. You should clearly indicate the nature of each gain resulting from each transaction. (Tax rate schedule is included on the next page.) B Would Taylor be better off if he had delayed selling the San Francisco land and/or XYZ stock till 2013?