Please read the following statement of facts and complete the form

For this assignment:

• Read the statement of facts.
• Visit the IRS forms website
• Find and prepare PDF versions of the following IRS forms and Schedules, if applicable:Form 4797, Form 6252, and Form 8824 (page 2 only)Schedule D and Schedule 1 (page 1 onlyStatement of FactsTaxpayer John Doe has the following personal information:Name: Dr. John DoeSSN: 333-33-3333Address: 333 Any Street, Anytown, CA 90000Summary:Dr. John Doe (Dr. DOE) has been a medical doctor for many years. Since 2002, Dr. DOE had his own medical practice (the Practice). The Practice uses the cash-basis accounting method and operates as a sole proprietorship. According to Dr. DOE’s last income tax filings, the Practice had several business assets (details below). In the current tax year, Dr. DOE decides to retire from medicine to pursue a career as a long haul trucker. Dr. DOE sold the Practice and all of its assets to a physician group for $3,000,000 ($2,500,000 in cash and a short term note for $500,000). The note will be paid over 13 months (12 months in the next tax year and 1 month this tax year). The payment this tax year will be an interest only payment of $25,000. All other payments are principle only. Dr. DOE would like to invest the cash proceeds from the sale in: 1) commercial real estate; and 2) machinery and equipment for his new trucking business. The remaining funds will be used as working capital for Dr. DOE’s new trucking business and for personal expenses.The Practice has the following long term assets just prior to the sale to the physician group:Accounts Receivable from Patients (all older than 1 year): Book Value: $30,000; FMV = $10,000Medical Equipment: Cost Basis = $200,000; Adjusted Basis = $20,000; FMV = $110,000Office Equipment & Furniture: Cost Basis = $50,000; Adjusted Basis = $0; FMV = $10,000Medical Office: Cost Basis = $800,000; Adjusted Basis = $400,000; FMV = $2,000,000; Debt $0Customer Lists and Goodwill: Cost Basis = $0; Adjusted Basis = $0; FMV (TBD by student)Dr. DOE would like to elect to defer recognition of the gain in his building through a Section 1031 exchange. Dr. DOE timely identified replacement property (a small strip mall) with a FMV of $1,800,000. DOE will purchase the replacement property through a transfer in escrow of the sale’s cash proceeds. Note: When preparing DOE’s current year tax return, please make any and all elections that will give DOE the lowest total income tax. For simplicity purposes, please 1) complete only page 2 of Form 8824 and assume all required dates/notices were timely; and 2) complete only page 1 of Schedule 1.Please answer the following multiple questions base on the above statement1. Which lines on Schedule 1 have non-zero entries?A. Line 4, 8(z), & 10B. Lines 3, 4, & 10C. Lines 4 & 102. Which lines on Schedule D have non-zero entries?A. 11, 15, & 16B. 10, 11, 15, & 16C. No answer text provided.D. 11, 15, 16, & 193. The amount on line 7 of Form 4797 is?A. $370,000B. No answer text provided.C. $200,000D. $570,0004. The amount on line 13 of Form 4797 is?A. No answer text provided.B. $90,000C. $110,000D. $100,000