The first problem of number 2 is correct but I am having hard time figure out why problem 3 wouldnt be same as problem 2.
On March 14 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 $1,475,500; $328,000 was allocated to the basis of the land and the remaining $1,147500 was allocated to the basis of the building. (Use MACRS Table 1. Table 2. Table 3. Iable 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Part 1 of 3 a. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Answer is complete and correct Year Depreciation deduction 23,328 2 29.422 s 29 4220 3 to the questions displayed below) On March 14 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 $1,475,500: $328,000 was allocated to the basis of the land and the remaining $1147,500 was allocated to the basis of the building. (Use MACRS Table 1. Table 2. Table 3. Table 4 and Iable 5) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Part 2 of 3 o. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Depreciation deduction Year 23,329 b. What would be the year 3 depreciation deduction if the building was sold on January 8 of year 3? Year 3 depreciation deduction TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 10-Year 15-Year 20-Year Year 3-Year 5-Year 7-Year 3.750% 7.219 6.677 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 14.29% 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 24.49 17.49 12.49 8.93 8.92 8.93 4.46 4 5.713 5.285 4.888 4.522 4462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4. 461 4.462 4.461 2.231 6 9 10 12 15 16 17 18 21 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period s Year 7Year 3500% 6.00 15.60 11.01 11.01 .38 25.00% 1.43 15.31 1093 8.75 8.74 8.75 1.09 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 7-Year 18.00 11.37 11.37 426 17.85% 23.47 16.76 11.97 887 8.87 B.87 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 7 Year 1 00% 3400 20.40 1224 1.30 7.06 10.71% 25.51 18.22 13.02 .85 8.86 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 7-Year 157% 38.00 2280 1368 1094 958 27.55 19.68 14.06 1004 873 873 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Month Property Placed in Service 10 2.576% 970% 667% 1.364% 3636 3636 3637 3636 3485% 3182% 2879% 3.636 2273% 1.061% 0.758% 0455% 0. 152% 3.636 3.636 3.637 3.636 3.637 3.636 3637 3636 10 3.636 3637 3636 3637 3636 3637 3636 3637 3636 3637 3636 3637 3636 3.636 3637 3.636 3.637 3636 3.637 3637 3.637 3.636 12 13 3636 3637 3636 3637 3.636 3.637 3636 3.637 3636 3.637 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 16 17 3637 3.637 3.637 3536 3637 3636 3637 3636 3.636 3637 3.636 3.637 3.636 3.637 3637 3636 3.637 3.636 3637 3.636 3637 3636 3637 3636 3637 3636 3.637 3.636 19 20 3636 3637 3636 3.637 3637 636 3.637 3636 3.636 3.637 3637 3.637 3637 3636 3637 3.636 3637 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3636 3.637 3636 3636 25 26 3637 3636 3637 3636 3485 3 637 3.636 3.637 3637 3636 3.636 3637 3.637 3.636 3636 3636 3637 3.636 3637 TABLE 4 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 3042% 2.778% 2.513% 2249% 1.720% 1.455% 0 926% 0.661% 0.397% | 0.132% 3.174 3.175 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.175 3.175 3.175 3174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 3.174 3.174 3.174 3.174 3.174 10 3.175 3174 3.175 3.174 3.175 12 13 3.174 3.175 3.174 3.174 3.174 3.174 3.174 3.174 3.174 16 17 18 19 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.174 3.174 21 3.174 3.175 3.174 3175 3.174 3.175 3.174 3.175 3.174 3.175 3174 3.175 23 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 28 29 30 31 3.174 3.174 3.175 3.174 3.175 3.174 3175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 2249 2.778 3042 3.175 3.175 3.175 0926 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Year 10 12 1.819% 2564 0.749 2.461% 2-39 2.564 40 2.247% 2564 0.321 2.033% 2564 0.535 1.605% 2564 0963 1.391% 2564 1.177% 2 564 1.391 0.963% 2.564 1.605 0.749% 2.564 1.819 0.535% 2.564 2.033 032 1% 2564 2.247 0.107% 2.564 2.461 0.107
