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Q1. On May 15, 2018, Lucentcorp, a calendar year taxable corporation, purchaced an office building for...

Q1. On May 15, 2018, Lucentcorp, a calendar year taxable corporation, purchaced an office building for $7,600,000, of which $850,000 was allowable to the land and $400,000 was due to

15-year land improvements. Give the corporation's allowable dereciative deductions for the other building and the land improvements for 2018 assuming that Lucentcorp does not elect to expense or use bonus depreciation for any asset purchace in 2018.

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Answer #1
Personal property 179 election MACRS Basis Depreciation Rate Depreciation Amount
Land improvement                     -             400,000 5.00%        20,000.00
Building        6,350,000 1.6050%      101,917.50
Depreciation      121,917.50

Land is not depreciable

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