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On November 22 of year 1, Javier purchased a building, including the land it was...

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Accounting

On November 22 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 $1,692,500; $360,000 was allocated to the basis of the land and the remaining $1,332,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.

b. What would be the year 3 depreciation deduction if the building was sold on March 4 of year 3?

c. Assume the building was purchased and placed in service on October 4 instead of November 22. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3?

d. Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3?

e. What would be the depreciation for 2023, 2024, and 2025 if the property were nonresidential property purchased and placed in service November 22, 2006 (assume the same original basis)?

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