On July 15, 2018, Mavis paid $275,000 for improvements on a commercial building she owns. Determine...
- On July 15, 2018, Mavis paid $275,000 for improvements on a commercial building she owns. Determine the maximum total cost recovery from the improvements in 2018.
Homework Answers
Solution:
The maximum total cost recovery from the improvements in 2018 is $ 3,237 (Approx).
Working:
| Year | Opening Balance(a) | Macrs Rate Mid Month Convention( July Month, 1st Year)(b) | Depreciation Expense(a*b) |
| 2018 | $ 275,000 | 1.1770% | $ 3,236.75 |
Notes:
1) Mid Month convention is used for commercial building.
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