Smith Enterprises purchases a 16-unit apartment complex for $1,100,000 on June 7th. An appraisal reveals the fair market value of the land to be $300,000 and the building to be $900,000.
1. Calculate the first year depreciation for the apartment complex.
2. Calculate the second year depreciation for the apartment complex.
3. If Smith Enterprises sells the apartment complex on August 4th of the third year, calculate the third year depreciation.