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Nonresidential realty costing $100,000 is placed in service in 2000. MACRS for 2019 is: O A. $2,500. B. $2,564. O C. $3,175.

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Answer #1

Answer:

Option B: $2564

Explanation:

Since no special reason has been mentioned to employ Alternative Depreciation System (ADS), GDS(General Depreciation System) will be applicable under Modified Accelerated Cost Recovery System (MACRS). The recovery period using GDS is 39 years as provided under IRS's useful life.

Here the Non-Residential Realty property was placed in service last year, it is very much clear that we are standing at end of 19th year and depreciation is to be calculated for the 19th year i.e. current year.

.

Calculation of Depreciation is as follows :

$ 100000/39 years

= $ 2564.10 or $ 2564.

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