XYZ company purchased a warehouse in June 2015 for a total of $30 million. It is estimated that the building and land are worth about the same .

a) How much depreciation XYZ can declare for the warehouse in 2015?

b) if XYZ company sold the waregouse in December 2017 for $28.5 million, how much capital gain/loss could they declare? ( Hint: Half-month convention also applies to the month of disposal)