On january 19 of year 1 javier purchased a building


On January 19 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 $1,479,500; $357,000 was allocated to the basis of the land and the remaining $1,122,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2,Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

a. Using MACRS, what is Javier’s depreciation expense on the building for years 1 through 3?

b. What would be the year 3 depreciation expense if the building was sold on May 6 of year 3?

c. Answer the question in part (a), except assume the building was purchased and placed in service on December 14 instead of January 19.

d. Answer the question in part (a), except assume that the building is residential property.

e. What would be the depreciation for 2015, 2016, and 2017 if the property were nonresidential property purchased and placed in service January 19, 1998 (assume the same original basis)?

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Financial Accounting: On january 19 of year 1 javier purchased a building
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