Sam started a small business a year ago $($i$.$e$.,$ this is the SECOND year of operations$).$ He purchased the following assets to use in the business:

Cost $(1/1/$x$1)$ Estimated Selling Price $(12/31/$x$2)$

Machinery $7$ years $$1,500,000$ $$1,650,000$

Land no depreciation $$55,000$ $$62,000$

Warehouse $39$ years $$120,000$ $$127,000$

In addition to the above assets that are used in the business, Sam purchased $1,000$ shares of stock to be held as an investment for the business $($no depreciation$).$ He paid $$15,000$ for the stock on $1/1/$x$1.$ The estimated market value of the stock as of $12/31/$x$2$ is $$10,000.$

Sam has always elected to maximize deductions whenever possible. The estimated operating income from the business in x$2$ is $$85,000.$ Sam's tax rate on ordinary income is $37\%$ and all capital gains are taxed at $15\%.$

Sam is beginning a new career. As such, he has decided to sell ALL of the business assets $($on $12/31/$x$2).$

$1.$ What are Sam's year $2$ cost recovery deductions for machinery, warehouse, land, and stock?

$2.$What is the adjusted basis of each asset as of $12/31/$x$2($just before the asset is sold$)$

$3.$ What is Sam's gain or loss from selling each asset?

$4.$ How much depreciation recapture will Sam be subject to for each asset?

$5.$ What is Sam's change in taxable income from selling the business assets?

$6.$ What is Sam's after$-$tax cash flow from selling the business assets?