federal tax, depreciation deductions under macrs

Project Description:

donald purchased the following business assets in 2014:

asset- factory equipment-date placed in service 4/1/14-cost $60,000
asset- computer equipment-date placed in service- 9/1/14- cost $30,000
asset-automobile -date placed in service 6/15/14-cost $32,000
asset-office building(70% building,30% land)-date placed in service 6/20/14-cost $2,500,000

donald drives the automobile 60% for business and 40% for personal use each year.
in addition to the above, donald paid and incurred $40,000 in business start-up costs in 2014 prior to the opening of his business on 3/30/14

part 1: calculate depreciation deductions under macrs for 2014 and 2015. claim the highest deduction without and sec 179 or bonus depreciation. show depreciation each year by asset, and show the total depreciation deduction donald will claim for all assets for 2014 and 2015.

part2: show all other deductions donald will claim for 2014 and 2015 (other than depreciation), based upon the above information.

part 3: assume he sold his factory equipment on 9/1/16 for $25,000.
part a. calculate donald's realized gain or loss on the sale of his factory equipment in 2016.
part b. assume donald has a 39.6% marginal federal tax rate in 2016. how much federal tax will donald pay or save on the gain or loss in part a?

part 4: assume donald sold his office building on 11/30/17 receiving $2,700,000 (70% represents building, 30% represents land).
part a. calculate donald's realized gain on the sale of this office building in 2017.
part b. assume donald has a 39.6% marginal federal tax rate in 2017. how much federal tax will donald pay on the gain in part a?

please show all calculations and explanations in the answers for each part.
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