On November 18 of year 1 Javier purchased a building, including the land it was...
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Accounting
On November 18 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,500,500; $363,000 was allocated to the basis of the land and the remaining $1,137,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Problem 10-51 Part-a
a. Using MACRS, what is Javiers depreciation deduction on the building for years 1 through 3?
b. What would be the year 3 depreciation deduction if the building was sold on January 22 of year 3?
c. Answer the question in part (a), except assume the building was purchased and placed in service on October 13 instead of November 18.
d. Answer the question in part (a), except assume that the building is residential property.
e. What would be the depreciation for 2018, 2019, and 2020 if the property were nonresidential property purchased and placed in service November 18, 2001 (assume the same original basis)?
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