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9.28 On October 1st, you purchased a residential home in which to locate your professional office for $350,000. The appraisal is divided into $80,000 for the land and $270,000 for the building. a. In your first year of ownership, how much can you deduct for depreciation for tax purposes? b. Suppose that the property was sold at $375,000 at the end of fourth year of ownership. What is the book value of the property?

9.28 On October 1st, you purchased a residential home in which to locate your professional office for $350,000. The appraisal is divided into $80,000 for the land and $270,000 for the building. a. In your first year of ownership, how much can you deduct for depreciation for tax purposes? b. Suppose that the property was sold at $375,000 at the end of fourth year of ownership. What is the book value of the property?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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9.28 On October 1st, you purchased a residential home in which to locate your professional office for $350,000. The appraisal is divided into $80,000 for the land and $270,000 for the building. a. In your first year of ownership, how much can you deduct for depreciation for tax purposes? b. Suppose that the property was sold at $375,000 at the end of fourth year of ownership. What is the book value of the property?
Transcribed Image Text:9.28 On October 1st, you purchased a residential home in which to locate your professional office for $350,000. The appraisal is divided into $80,000 for the land and $270,000 for the building. a. In your first year of ownership, how much can you deduct for depreciation for tax purposes? b. Suppose that the property was sold at $375,000 at the end of fourth year of ownership. What is the book value of the property?
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