Question

Raul purchased an apartment building on May 30 , 2020. The cost of the building is $200,000 . The apartment building is located in Mexico . what depreciation table will Raul use to calculate his depreciation ?

a)Exhibit 8-3 MACRS Accelerated Depreciation for Personal Property Assuming Half -Year Convention b)Exhibit 8-7 ADS Straight -Line Depreciation for Personal Property Assuming Half -Year Convention c)Exhibit 8-8 MACRS Straight -Line Depreciation for Real Property Asssuming Mid - Month Convention d)Exhibit 8-9 ADS Straight -Line Depreciation for Real Property Asssuming Mid -Month Convention

Answer 1

Answer: Option d) Exhibit 8-9 ADS Straight-line Depreciation for Real Property Assuming MId - Month Convention.

Explanation:

Raul purchases an apartment building on may 30, 2020. The building is located in Mexico then their use the depreciation on the base of Mexico rules.

Real estate is depreciated using the mid-month convention then the property is considered withere acquired or disposed.

In Mexico they used the exhibit 8-9 ADS Straight-line Depreciation for Real Property Assuming MId - Month Convention.

Thus, option d) is correct and remaining options are incorrect.