$28$Large Corporation acquired and

placed in service the following $100\%$ business$-$use assets. Large did not claim Sec. $179$ or

bonus depreciation expensing on any of these properties.

$$ Truck $($light$-$duty, modified non$-$personal use$)$ costing $$36,000$: Placed in service on

March $3,2023,$ with a $5-$year MACRS recovery period.

$$ Machinery costing $$85,000$: Placed in service on November $15,2023,$ with a $7-$year

MACRS recovery period.

$$ Land costing $$90,000$: Placed in service on October $12,2023.$

$$ Building costing $$280,000$: Placed in service on December $4,2023,$ with a $39-$year

MACRS recovery period.

a$.$ What is Large$$s total depreciation deduction in $2023?$

b$.$ Large Corporation sells the machinery on February $2,2025,$ and sells the building on

September $18,2025.$ What are the adjusted bases of these two assets on the dates of

sale $($compute accumulated depreciation to date of sale$)?$

$32$In $2023,$ Richmond Corporation

purchases and places into service a machine. Richmond elects Sec. $179$ expensing for

$$1\mathrm{.}16$ million of its $$1\mathrm{.}36$ million cost. The machine has a $7-$year MACRS recovery pe$-$riod. Assume the half$-$year convention applies and that Richmond$$s taxable income $($be$-$fore deducting Sec. $179$ expensing$)$ exceeds such expensing.

a$.$ What is Richmond$$s total depreciation deduction for the machine for each year of its

recovery period if it elects out of bonus depreciation for $2023?$

b$.$ How would your answer to Part a change if Richmond does not elect out of bonus

depreciation for $2023?$

c$.$ How would your answers to Parts a and b change if Richmond sells the machine for

$$430,000$ on January $31,2025?$ What is its gain or loss on the sale?