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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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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