(1) Julia purchased a warehouse building, including the land it was on, for use in her business. The total cost of the purchase was $1,380,000; $395,000 was allocated to the basis of the land and the remaining $985,000 was allocated to the basis of the building. (Use MACRS)

Assume the building was purchased and placed in service on October 30. Using MACRS, what is Julias depreciation deduction on the building for years 1 through 3?

(2)

Dog Co. acquired and placed in service the following assets during the year:

	Date	Cost
Asset	Placed in Service	Basis
Computer equipment	2/23	$	13,500
Furniture	6/20		24,600
Commercial building	8/10		335,000

Assuming Dog Co. does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS)

What is Dog Co.'s year 3 cost recovery for each asset if Dog Co. sells all of these assets on 5/4 of year 3?