$7$Is a deduction allowed under the MACRS rules

for depreciable real estate $($used in a business or

held for investment$)$ in the year the property is

sold? If so$,$ explain how it is calculated.

$25$Sandy acquired business machinery $(7-$year

MACRS property; half$-$year convention$)$ on July $15,2020,$ for $$10,000.$ For $2020,$ Sandy

claimed a $$1,429$ regular MACRS depreciation deduction and did not claim Sec. $179$

depreciation or bonus depreciation. Because of her low tax rate in $20212023,$ Sandy didnot claim any depreciation deduction on her tax returns in those years. She sells the ma$-$chine on July $1,2023,$ for $$6,000.$

a$.$ What is the adjusted basis of the machine on the sale date?

b$.$ How much gain or loss is recognized on the sale of the machine?