On March 1, 2016, Babar Inc., pays $1,200,000 for a store building, moves into the building and begins business on April 1. Babar properly allocates $1,000,000 of its cost to the building and $200,000 to the land. On May 21, 2016, it installs $523,000-worth of new display shelving. Babar wants to claim the maximum allowable depreciation on the property it purchased. On January 2, 2019, Babar sells the land and building for $1,400,000 and the display shelving for $45,000.

a. What is Babar's maximum depreciation deduction for 2016?

b. What is Babar's maximum depreciation deduction for 2019?

c. What is Babar's gain or loss on the sale of the land and building?

d. What is Babar's gain or loss on the sale of the shelving?