The XYZ Printing Company was founded in 2000 by Mr. M as a one-man-job printing firm inasmallsouthwesterntown.Shortly after its founding,theownerdecidedtoconcentrateononespecialty line of printing. Because of a high degree of technical proficiency, the company experienced a rapid growth. However, the company suffered from a competitive disadvantage in that the major market for this specialized output was in a metropolitan area over 300 miles away from the company's plant. For this reason, the owner, in 2012, decidedtomovenearerhisprimarymarket.He also decidedtoexpandand modernize his facilities at the time of the move. After some investigation, an attractive site was found in a suburb of his primary market, and the move was made.

1)Thecompanyerectedabuildingatthenewsitefor$900,000.Ofthisamount,$700,000was borrowed on a mortgage.

Question:

1.)The New Building - Calculate the cost that would go on the books for this purchase.Fully analyze this asset as we have done in class.Find the Primary Source to document class, method and convention.Calculate the depreciation for this asset over its ENTIRE life (MACR Depreciation). Do not consider section 179 or bonus depreciation.

Additional Information

a.)The building was placed in service on June 30, 2013.