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Required information The following information applies to the questions displayed below. On April 27 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 $1,438,000; $308,000 was allocated to the basis of the land and the remaining $1,130,000 was allocated to the basis of the building. (Use MACRS Iable 1, Table 2 Table 3. Iable 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Year deduction b. What would be the year 3 depreciation deduction if the building was sold on November 18 of year 3? ar 3 depreciation deduction c. Assume the building was purchased and placed in service on March 11 instead of April 27. Using MACRS, what is Javiers depreciation deduction on the building for years 1 through 3? Depreciation deduction Year d. Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Depreciation Yeardeduction e. What would be the depreciation for 2018, 2019, and 2020 if the property were nonresidential property purchased and placed in service April 27, 2001 (assume the same original basis)? Depreciation deduction Year 2018 2019 2020 TABLE S Nonresidential Real Property Mid-Month Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 2 224796 2.564 0.321 Month 3 2033% 2.564 0.535 Month S Month 6 Month 7 1.17796 Month 1 Month 4 18196 2.564 0.749 Month 8 Month 9 0.749% 2.564 1819 Month 10 0.575% 2.564 2.033 Month 11 0.321% 2.564 2.247 Month 12 0, 107% 2.564 2.461 Year 1 Year 2-39 Year 40 2 461% 2.564 0.107 1.60596 2.564 0.963 1.391% 0.963% 2.564 2564 2.564 13911.605 1.391 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery P eriod 5-Year 35.00% 26.00 15.60 11.01 11.01 1.38 7-Year 25.00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 Year 1 Year 2 Year 3 Year Year 5 Year 6 Year 7 Year 8 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 25.00% 30.00 18.00 11.37 11.37 4.26 7-Year 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 3.34 Year 1 Year 2 Year 3 Year Year 5 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 7-Year 5-Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.00% 34.00 20.40 12.24 11.30 10.71% 25.51 18.22 13.02 9.30 8.85 8.86 5.53 7.06 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 7-Year 5-Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 5.00% 38.00 22.80 13.68 10.94 9.58 3.57% 27.55 19.68 14.06 10.04 8.73 8.73 7.64 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 33.33% 44.45 14.81 7.41 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 Year 10-Year 15-Year 20-Year 14.29% | 10.00% | 5.00% | 3.750% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 24.49 17.49 12.49 8.93 8.92 8.93 4.46 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 7.219 6.677 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month 1 Month 2 Month 3 Month 4 Month 5Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 3.182 3.485% % 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.636 Year 10 3637 Year 11 3.636 Year 12 3.637 3.636 3.636 3.637 3.636 3.636 3.636 3.636 3.637 3.636 3.63 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3,637 3.636 3.637 3.636 3.637 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 Year 153.636 Year 163.637 Year 17 3.636 Year 1 Year 19 3.636 Year 20 3.637 Year 21 3.636 Year 22 3.637 Year 23 3.636 Year 243.637 Year 253636 Year 26 3.637 Year 273.636 Year 28 Year 29 3.637 3.637 3.637 3.636 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.485 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3,637 3,637 3.636 3.636 3.637 3.637 3.636 3.636 3.636 2.273 3.636 3.636 3.636 3.636 0.455 0.758 1 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line -31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 2 2.778% 2.249% 1.720% 1.455% 3.042% 0.132% Year 2-7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 .174 3.174 3.174 3.174 3.174 .174 3.174 .174 .174 .174 3.174 3.174 3.174 3.174 3.174 3.175 .174 .175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 .174 .174 3.174 .174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 .175 .174 3.175 .174 3.174 3.175 3174 3.174 .174 3.175 .174 3.174 3.175 3174 3.174 3.174 .174 .174 3.175 .174 3.175 .174 .174 3.174 .174 3.173 .174 .175 .175 .174 .175 .174 .174 .175 3.174 .174 .174 .174 3.175 3.174 174 3.174 .174 3,174 3174 ,174 3174 .174 1984 .174 0.397 3.042 0.132 0.926 0.661 1455

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