Transcribed Image Text
On April 17 of year 1 Javier purchased a building, including theland it was on, to assemble his new equipment. The total cost ofthe purchase was $1,533,000; $393,000 was allocated to the basis ofthe land and the remaining $1,140,000 was allocated to the basis ofthe building. Use MACRS.a. Using MACRS, what is Javier’s depreciationdeduction on the building for years 1 through 3?YearDepreciation Deduction123B. What would be the year 3 depreciation deduction if thebuilding was sold on February 9 of year 3?c. Answer the question in part (a), exceptassume the building was purchased and placed in service on February17 instead of April 17.Year . Depreciation Deduction123d. Answer the question in part (a), exceptassume that the building is residential property.Year . Depreciation Deduction123What would be the depreciation for 2018, 2019, and 2020 if theproperty were nonresidential property purchased and placed inservice April 17, 2001 (assume the same original basis)?Year . Depreciation Deduction201820192020