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last answer posted was incorrect. please help, thanks! Problem 10-51 (LO 10-2) (Algo) [The following information applies to the questions displayed below.] On February 17
last answer posted was incorrect. please help, thanks!
Problem 10-51 (LO 10-2) (Algo) [The following information applies to the questions displayed below.] On February 17 of year 1 , Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,302,500;$295,000 was allocated to the basis of the land and the remaining $1,007,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Problem 10-51 Part a (Algo) a. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3 ? b. What would be the year 3 depreciation deduction if the building was sold on May 20 of year 3 ? c. Assume the building was purchased and placed in service on November 22 instead of February 17. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3 ? d. Assume the building was purchased and placed in service on February 17 of year 1 and is residential property. e. What would be the depreciation for 2023,2024 , and 2025 if the property were nonresidential property purchased and placed in service February 17, 2006 (assume the same original basis)Step by Step Solution
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