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On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Click here to access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. $fill in the blank 98b1bc044f93fcc_1 b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.

On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Click here to access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. $fill in the blank 98b1bc044f93fcc_1 b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000.

Click here to access the depreciation tables.

a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS.
$fill in the blank 98b1bc044f93fcc_1

b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.

TABLE 8.5 Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* 27.5-Year Residential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 1 2 3 5 7 10 11 12 1 3.485 3.182 2.879 2.576 2.273 1.970 1.667 1.364 1.061 0.758 0.455 0.152 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 19-27 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 28 1.970 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.364 1.667 39-Year Nonresidential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 1 2 3 5 7 10 11 12 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 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 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 *The official tables contain a separate row for each year. For ease of presentation, certain years are grouped together in these two tables. In some instances, this will produce a difference of .001 percent when compared with the official tables.
Transcribed Image Text:TABLE 8.5 Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* 27.5-Year Residential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 1 2 3 5 7 10 11 12 1 3.485 3.182 2.879 2.576 2.273 1.970 1.667 1.364 1.061 0.758 0.455 0.152 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 19-27 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 28 1.970 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.364 1.667 39-Year Nonresidential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 1 2 3 5 7 10 11 12 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 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 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 *The official tables contain a separate row for each year. For ease of presentation, certain years are grouped together in these two tables. In some instances, this will produce a difference of .001 percent when compared with the official tables.
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