Question

Given the following information, calculate the annual depreciation for year 1. The original cost basis is...

  1. Given the following information, calculate the annual depreciation for year 1. The original cost basis is $1,156,000 on your purchase of office building. The percent allocated to land is 20%. Personal property is $100,000. Cost Recovery Period is 27 years for Residential and 39 years for Commercial.

    $30,720

    $21,662

    $21,149

    $27,084
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Answer #1
Particulars Basis × rate Depreciation
Land $        231,200 0
Personal property $        100,000 0 $                -  
Balance warehouse $        824,800 0.025641 $ 21,148.72
$ 21,148.72

Personal property portion and land depreciation not allowed.

Answer is $21,149

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