$*$ Pay special attention to dates for all depreciation problems.

$1.$ Sterling Company acquires a new machine $($seven$-$year property$)$ on January $10,2023,$ at a cost of $$1,300,000.$ Sterling elects to depreciate the max amount under section $179$ but no additional $1$st year bonus depreciation. Calculate the total deprecation in year $1$ and show me your work. $5$ points

$2.$ On June $1,2023$ Cheryl places in service an automobile that cost $$70,000.$ The car is used $80\%$ for business and $20\%$ for personal use. $($Assume this percentage is maintained for the life of the car.$)$ Determine the depreciation deduction for $2023(5$ year asset, No Section $179$ and no $1$st year bonus depreciation$).$ Show me all your work for full points. $5$ points

$3.$ In year $1,$ Kelly, who earns a salary of $$200,000,$ invests $$40,000$ for a $20\%$ interest in a partnership not subject to the passive loss rules. The partnership produced a loss of $$150,000,$ of which Kelly$$s share is $$30,000.$ In year $2,$ Kelly$$s share of loss from the partnership is $$15,000.$ How much of the loss from the partnership can Kelly deduct in year $1$ and year $2?($Explain year $2)3$ points

$4.$ In year $1,$ Emily invests $$120,000$ in a limited partnership that is not a passive activity. During year $1,$ her share of the partnership loss is $$45,000.$ In year $2,$ her share of the partnership loss is $$95,000.$ How much can Emily deduct in year $1$ and year $2?($Explain year $2)3$ points

$5.$ Joyce, an attorney, earns $$200,000$ from her law practice in the current year. In addition, she receives $$35,000$ in dividends and interest during the year. Further, she incurs a loss of $$35,000$ from an investment in a passive activity. What is Joyce$$s AGI for the year after considering the passive investment and explain why? $3$ points

$1.$ Noelle received stock as a gift from her friend, Jane. Jane$$s adjusted basis was $$9,200$ and the fair market value on the date of the gift was $$7,000.$ Noelle decided she did not need the stock and sold it to a neighbor six months later for $$6,500.$ What is her recognized gain or loss? Show your work. $2$ points

$2.$ In year $1,$ Wendy had a $$14,000$ net short$-$term capital loss and deducted $$3,000$ as a capital loss deduction. In year $2,$ she has a $$17,0000\%/15\%$ long$-$term capital gain and no other capital gain or loss transactions. What$$s her net capital gain or loss in year $2?$ Show your work. $2$ points

$3.$ In this tax year, Steve has a $$4,000$ short$-$term capital loss, $$14,0000\%/15\%$ long$-$term capital gain, and $$7,000$ qualified dividend income. He is single and has other taxable income of $$100,000.$ How much of Steve$$s income will be taxed at the low capital gains rate of $15\%?$ Show your work. $2$ points