On February 22 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 $1,380,000; $395,000 was allocated to the basis of the land and the remaining $985,000 was allocated to the basis of the building.

A) Using MARCS, what is Javier's depreciation deduction on the building for years 1-3?

Year 1 $19,995

Year 2 $25,255

Year 3 XXX ( this answer is not $25,255)

B) What would be the year 3 depreciation deduction if the building was sold on May 15 of year 3?

C) Assume the building was purchased and placed in service on October 30 instead of February 22. Using MARCS, what is Javier's depreciation deduction on the building for years 1-3?

Year 1 XXX

Year 2 XXX

Year 3 XXX

D) Assume the building is residential property. Using MARCS, what is Javier's depreciation deduction on the building for years 1-3?

Year 1 XXX

Year 2 XXX

Year 3 XXX

E) What would be the depreciation for 2018, 2019, and 2020 if the property were nonresidential property purchased and placed in service February 22,2001 (assume the same original basis)?

2018 XXX

2019 XXX

2020 XXX