On January 16 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 $1,346,000; $386,000 was allocated to the basis of the land and the remaining $960,000 was allocated to the basis of the building. Required:
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)?

For each example identify the most appropriate ctso

Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor. required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)