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3. (5 points) On February 25, 2016, Velo Corporation, a calendar year taxpayer, purchased an apartment building for $1,650,000 of which $250,000 was allocable to

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3. (5 points) On February 25, 2016, Velo Corporation, a calendar year taxpayer, purchased an apartment building for $1,650,000 of which $250,000 was allocable to the land. On April 1, 2017, Velo bought a warehouse for $975,000 of which $180,000 was allocable to the land. On May 20, 2019, Velo sold the apartment building and on September 16, 2019, it also sold the warehouse. Compute Velo Corporation's allowable depreciation deductions for each building both for the year of purchase 4. (5 points) On November 4, 2016, Smith Corporation purchased equipment (7-year property) for $87,600 and a sprinkler system and new septic system (both 15-year v) for $92.000 for its office building grounds. Smith Corporation purchased the office building on September 11, 2016, for $1,500,000 of which $200,000 was allocable to the land. These were the only asset purchases by Smith during 2016. On May 20, 2019, Smith sells the building along with the equipment, sprinkler system, and septic system. Compute Smith Corporation's allowable depreciation deduction for the office building. the equipment, and the sprinkler and septic systems for both the year of purchase (2016) and the year of sale (2019) assuming that it did not use expensing or bonus depreciation for any of these assets. 3. (5 points) On February 25, 2016, Velo Corporation, a calendar year taxpayer, purchased an apartment building for $1,650,000 of which $250,000 was allocable to the land. On April 1, 2017, Velo bought a warehouse for $975,000 of which $180,000 was allocable to the land. On May 20, 2019, Velo sold the apartment building and on September 16, 2019, it also sold the warehouse. Compute Velo Corporation's allowable depreciation deductions for each building both for the year of purchase 4. (5 points) On November 4, 2016, Smith Corporation purchased equipment (7-year property) for $87,600 and a sprinkler system and new septic system (both 15-year v) for $92.000 for its office building grounds. Smith Corporation purchased the office building on September 11, 2016, for $1,500,000 of which $200,000 was allocable to the land. These were the only asset purchases by Smith during 2016. On May 20, 2019, Smith sells the building along with the equipment, sprinkler system, and septic system. Compute Smith Corporation's allowable depreciation deduction for the office building. the equipment, and the sprinkler and septic systems for both the year of purchase (2016) and the year of sale (2019) assuming that it did not use expensing or bonus depreciation for any of these assets

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