On January 8 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 $1,399,500; $322,000 was allocated to the basis of the land and the remaining $1,077,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

a. Using MACRS, what is Javiers 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 February 26 of year 3?

c. Assume the building was purchased and placed in service on October 28 instead of January 8. Using MACRS, what is Javiers depreciation deduction on the building for years 1 through 3?

d. Assume the building is residential property. Using MACRS, what is Javiers depreciation deduction on the building for years 1 through 3?

e. What would be the depreciation for 2018, 2019, and 2020 if the property were nonresidential property purchased and placed in service January 8, 2001 (assume the same original basis)?

TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3-Year 5-Year 10-Year 20-Year 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 7-Year 14.29% 24.49 17.49 12.49 8.93 10.00% 18.00 14.40 11.52 9.22 7.37 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 8.92 8.93 6.55 4.46 6.55 5.90 6.56 6.55 3.28 5.91 5.90 5.91 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 5.90 5.90 5.91 2.95 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year 35.00% 26.00 15.60 11.01 11.01 25.00% 21.43 15.31 10.93 8.75 74 8.75 109 1.38 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year -NM 25.00% 30.00 18.00 11.37 11.37 4.26 17.85% 23.47 16.76 11.97 8.87 8.87 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year 10.71% 25.51 OU UN-8 15.00% 34,00 20.40 12.24 11.30 7.06 18.22 13.02 9.30 8.95 8.86 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year 3.573 27.55 19.68 NMON 5.00% 38.00 22.00 13.68 10.90 9.58 14.05 10.04 8.73 8.73 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Month Property Placed in Service Year 8 9 10 11 12 3485% 3528 3637 3636 3627 2879% 3.636 3627 3.636 3.1829 3.636 3.637 3.636 3.637 3636 3627 3,636 1970% 3635 3637 3636 3637 3536 1 667% 3.636 3636 3.632 3.536 3.632 3636 07589 3636 3636 3.632 3636 3632 31636 2.273% 3.636 3.637 3.636 3.627 3636 3637 3.636 3637 2.636 3.637 3636 1.061% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.627 3636 3.637 37636 3.637 7636 3.637 3.636 3637 13645 3636 3.636 3637 3625 3637 3636 3627 3636 2637 3.636 3.637 3636 3637 0152% 3625 3.636 3637 3636 3637 3636 3627 3636 3.637 3.636 3637 3636 2575% 3636 3627 3636 3637 3636 3637 3636 3637 3636 3637 3636 3637 3636 3637 3.636 3.637 3636 3637 3636 2.879 3637 3636 3637 3636 3.637 3636 3637 3.636 3637 3.636 3637 3636 3637 3637 3.636 3635 3637 3635 3.637 3636 3637 3.636 3637 3.636 3.636 3637 0455% 3636 3636 3637 3626 3637 3.636 2637 3636 3627 3.636 3637 2636 3.637 3636 3.637 3.636 3637 3.636 3637 3.636 1 364 3637 3.636 3.637 3.636 3.637 3.636 2637 3.636 3.637 3636 3637 3.636 3637 3636 3.637 3636 3.636 3.637 3636 3636 2636 3636 37637 3.637 3.636 2.637 3636 2.637 2637 3.636 2637 3636 3.637 2636 3.637 3.636 3.182 3.637 2636 3.637 3636 3637 3636 27637 2.637 3.637 3.636 3637 3.636 3.637 3.636 0.758 3.636 3637 3.636 3637 3.636 0.152 3.636 3637 3.636 3.637 3.636 0.455 3636 3635 3636 3637 3.636 3637 3.636 1.061 2.272 2.576 31485 3637 3636 1667 TABLE 4 Year 12 0132% 3.175 3175 3175 3174 3.175 21/5 3.175 3174 3.174 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service 1 2 3 4 5 6 7 8 9 10 11 3042% 2.778% 2.513% 2.249 1984% 1.720% 1455% 1 1306 0.926% 0.6619 0.397% 3125 2 175 3.175 3175 3175 3.125 3175 3175 3.175 3175 3175 3174 3.175 3 174 3175 3 174 3.125 3175 3175 3.175 3.175 3 174 3175 3.174 3 175 3174 9175 3.174 3.175 3 174 3.175 3 174 3175 2174 3174 3175 2174 2175 3175 3174 3175 3.174 3175 3175 3.174 3.175 3 174 3.175 3174 2174 7174 2175 3175 3 174 3175 3.174 3.175 3.174 175 3.174 3.175 3.174 3.175 3 174 3175 3.174 3.175 317 3.175 2174 3.175 3.174 3.175 3 174 3175 3 1/4 2174 3.175 3.174 3.175 3 174 3.175 2174 3.175 3174 3.175 3.174 3.175 2114 3.175 3.174 3.175 2 1741 3175 2174 3.175 2.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.17 3.174 31/5 21/5 21/4 31/5 3.175 11/4 21/5 3.174 31/5 3174 3.175 3.174 3.175 3 174 2175 3.174 2175 3174 3.175 3.174 3175 31/4 3.175 31/4 31/5 3114 31/4 3.174 3124 3175 3.174 3175 3.174 3175 3.124 2115 3174 3.175 3174 3.175 3.175 2174 3175 2174 3.175 2174 3.175 3.174 3.175 3124 3.174 3175 3124 3.175 3.124 3.175 3174 3.175 3174 3.175 3.174 3.175 3.174 3.175 2174 3.175 3.174 3.175 3.174 3.175 3.124 3.174 3175 3.174 3175 3.124 3.175 3.174 3.175 3.174 3.125 3.174 3.175 3.174 3175 3.174 3.175 3174 3.175 3.174 3.175 3 174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3 174 2.175 3 174 3.175 3.175 3174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3175 3.174 2.175 3.174 3.175 3.174 2.175 1.720 1994 2.249 2.513 2778 1042 3.175 3174 3.175 3.174 3.175 0.132 10.397 0.661 1190 3.174 3.175 2175 3.175 21/4 2174 3175 3.174 3.125 3.174 3 125 3.174 2.175 3.174 3175 3.174 2175 3.174 0926 1455 TABLE 5 Click to close this tab; Option-click to close all tabs except this one Year Nonresidential Real Property Mid-Month Convention Straight Line- Month Property PIE 1 2 3 4 5 6 2.461% 2.247 203318196 1.GOS 13915 2.564 2.564 2564 2564 2564 2564 0.107 0321 0.525 0.749 0 .983 1.177 1.1779 0.749% 0321 0.963% 2.554 1.605 2-39 0.107% 2564 0535% 2564 2.023 2564 2564 2247 40 1.391 1.819