Upon graduation, Mr. Sam B. , Mrs. Katie S., and Mr. Stockholm decide to form an LLC called SKS Investments, with a potential purchase of a 40-unit apartment building close to the their office. Before signing the contract SKS Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $200,000 for the land and $2,500,000 for the apartment building for a total of $2,700,000. If the purchase takes place in September, and assuming SKS Investments plans to sell the apartment building in February of the fourth year, answer questions 1 4 below.

1. Using MACRS, what is the depreciation write-off for year 1 (d1)?
2. Using MACRS, what is the depreciation write-off for year 2 (d2)?
3. Using MARCS, what is the depreciation write-off for year 4 (d4)?
4. Using MACRS, what is the book value at the time the property is sold in year four (B4)?

Please show all work, thank you.