Carl purchased an apartment complex for $1.6 million on March 17 of year 1. of the purchase price, $550,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $65,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

a. What is Carl's allowable depreciation deduction for his real property for years 1 and 2?

b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3?