Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $219,000. The appraised fair market value of the warehouse was $127,500, and the appraised value of the land was $185,750. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

a. What is Bobs basis in the warehouse and in the land?

Warehouse __________

Land ___________

b. What would be Bobs basis in the warehouse and in the land if the appraised value of the warehouse is $97,500, and the appraised value of the land is $215,750?

Warehouse __________

Land ___________

Acorn Construction (calendar year-end C-corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.)

Acorn provided the following information:

Asset	Placed in Service	Basis
New equipment and tools	August 20	$	800,000
Used light duty trucks	October 17		1,200,000
Used machinery	November 6		525,000
Total		$	2,525,000

a. What is Acorns maximum cost recovery deduction in the current year?