Carl purchased an apartment complex for $1.1 million on March 17 of year 1.$300,000 of the purchase price was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $60,000.
a. What is Carl's allowable depreciation expense for his real property for years 1 and 2?
b. What is Carl's allowable depreciation expense for year 3 if the real property is sold on January 2of year 3?