Carl purchased an apartment complex for $1.4 million on March 17 of year 1. of the purchase price, $450,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $63,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Enter your answers in dollars and not in millions of dollars. b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3? Note: Do not round intermediate computations. Round your final answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Depreciation for year 3 $1,849 X
Carl purchased an apartment complex for $1.4 million on March 17 of year 1. of the purchase price, $450,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $63,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Enter your answers in dollars and not in millions of dollars. b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3? Note: Do not round intermediate computations. Round your final answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Depreciation for year 3 $1,849 X
Chapter16: Property Transactions: Capital Gains And Losses
Section: Chapter Questions
Problem 19P
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Transcribed Image Text:Carl purchased an apartment complex for $1.4 million on March 17 of year 1. of the purchase price, $450,000 was
attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $63,000. (Use
MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Note: Enter your answers in dollars and not in millions of dollars.
b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3?
Note: Do not round intermediate computations. Round your final answer to the nearest whole dollar amount.
X Answer is complete but not entirely correct.
Depreciation for year 3
$ 1,849 X
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