On July 18 of year 1 Javier purchased a building, including the land it was on,

Question

On July 18 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,595,500; $463,000 was allocated to the basis of the land and the remaining $1,132,500 was allocated to the basis of the building. d. Answer the question in part (a), except assume that the building is residential property e. What would be the depreciation for 2016, 2017, and 2018 if the property were nonresidential property purchased and placed in service July 18, 1999 (assume the same original basis)?

Explanation / Answer

Mehtod used is straigth line

Depreciation = original basis * rate

orginial basis = 1132500

rate = 2.564%

year 2016 = 1132500*2.564% = 29037

year 2017 = 1132500*2.564% = 29037

year 2018 = 1132500*2.564% = 29037

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