![[10pts] A commercial warehouse is purchased on June 19, 2019 with a cost basis of $335,000. Calculate its depreciation charge](http://img.homeworklib.com/questions/c3edb720-1977-11ea-b70e-b708c5ff53d4.png?x-oss-process=image/resize,w_560)
Homework Answers
Commercial warehouse being a non-residential property will be depreciated for 39 years under straight-line method of depreciation under MACRS, as follows :
Depreciation rates have been taken from MACRS mid-month table for 39 year class.
Depreciation for year 1 = $335,000 * 1.39 = $4,653
Depreciation for year 2 = $335,000 * 2.56 = $8,590
Depreciation for year 40 = $335,000 * 1.18 = $3,937
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