On March 27 of the current year, T Inc., a greeting card manufacturer, placed a new...
On March 27 of the current year, T Inc., a greeting card
manufacturer, placed a new building (not retail or restaurant or a
leased building) in service to house its operations. The portion of
the cost allocated to the building was $200,000. T’s maximum
depreciation deduction for the year is
a. $3,970.
b. $4,060.
c. $3,214.
d. $5,128.
e. none of the
above.
Homework Answers
Answer is b
Depreciation is straight line based on mid month convention. Useful life is 39 years for nonresidential real property.
Hence depreciation = (200000/39 )* 9.5/12
= 4059.83
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