Depreciable base of the building = 75%*cost = 75%*3,000,000 = 2,250,000
Residential property has a depreciable life of 27.5 years.
So, annual depreciation = 2,250,000/27.5 = 81,818 (Option B)
You are considering the purchase of a small apartment building. The total cost to acquire the...
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