During April of the current year, Ronen purchased a warehouse that he used for business purposes. The basis was $1,615,000. Calculate the maximum depreciation deduction during the current year. (Use MACRS Table 5.) (Round final answer to the nearest whole number.)   TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line—39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service   Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1    2.461%    2.247%    2.033%    1.819%    1.605%    1.391%    1.177%    0.963%    0.749%    0.535%    0.321%    0.107% Year 2–39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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During April of the current year, Ronen purchased a warehouse that he used for business purposes. The basis was $1,615,000. Calculate the maximum depreciation deduction during the current year. (Use MACRS Table 5.) (Round final answer to the nearest whole number.)

 

TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line—39 Years (for assets placed in service on or after May 13, 1993)

Month Property Placed in Service
  Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Year 1    2.461%    2.247%    2.033%    1.819%    1.605%    1.391%    1.177%    0.963%    0.749%    0.535%    0.321%    0.107%
Year 2–39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564
Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461

 

 

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