MACRS (LO. 6) On March 1, 2020, Babar Inc., pays $1,200,000 for a store building, moves into the building, and begins business on April 1. Babar properly allocates $1,000,000 of its cost to the building and $200,000 to the land. On May 21, 2020, it installs $1,063,000 worth of new display shelving (7-year MACRS). Babar wants to claim the maximum allowable depreciation on the property it purchased but does not want to claim bonus depreciation Refer to the MACRS Depreciation Tables to answer the following questions. Round depreciation calculations to nearest whole dollar. If applicable, use rounded amounts in subsequent computations. Determine Babar's maximum depreciation deduction and subsequent gain(loss) on the sale of the land and building. (Assume that they have at least $1,500,000 of income.) a. What is Babar's maximum depreciation deduction for 2020? b. What is Babar's maximum depreciation deduction for 2023? On January 2, 2023, Babar sells the land and building for $1,400,000 and the display shelving for $45,000 Babar has a gain on the sale of the land and building. d. Babar has a gain on the sale of the shelving. C. of $ of $