for question 75: by using mid-month convention

the land :10,333,000 *0.15= $1,549,950

the building :10,333,000 *0.85 =$8,783,050

cost segregation : $8,783,050 -$1,000,000 = $7,783,050 allocate to building

the ratio to use for depreciation: year 1 :2.461% ; year 2 to year 39 : 2.564%

Building : year 1: $7,783,050 * 2.461%

Building : year 2: $7,783,050 * 2.564%

building: year 3 : $7,783,050 * 2.564% sum up year 1 to 3... the total of depreciation at end of year 3 :$590,655

therefore, the adjusted tax basis for building at end of year 3 is : $7,783,050 -$590,655 = $7,192,395 round up to $7,193,000

for Question 76, there is no value for the personal property at year 7.. so no adjusted basis at year of 10.

for questions 77, I know the correct answer is $1,979,000 .. but can any expert help to solve it with steps?? what would the unrecaptured section 1250 gain (taxed at 25% rate) .. remeber .. the correct answer for this questions is $1,979,000 /.. please list steps if you have same answer! the depreciation ratio i provided above and the the method is using mid-month convention!! Thank you!

Facts and information listed below is needed to resolve questions 75 and 77: On January 1st, Zachary purchased an office building and land (inclusive of acquisition costs) for a total $10,333,000. Zachary and his advisers determined that the land represented 15% of the total purchase price. Subsequent to closing, Zachary hire a third party provider to perform a cost segregation study of the building; as a result, S1,000,000 was reclassified to be personal property having a recovery period of 7 years or less. 75. What would the adjusted tax basis of the building be on December 31st of year 3 (rounded to S2K)? 76. What is the adjusted tax basis of the personal property at the end of year 9 (rounded to S2K)? 77. What would the unrecaptured Section 1250 gain (taxed at the 25% rate) be if the land, building and personal property were sold for 15,333,000 at the end of year 10