The main purpose of all criticism is to _______.
1 answer:
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Answer:
$4872
Explanation:
Given: Purchase price of an office building= $220000.
Out of cost building, $30000 was allocated to the land.
Remember, As per current US Tax code, commercial building can be depreciated over 39-year straight-line for commercial property.
Now, calculating the current year depreciation deduction.
We know, land is not depreciable.
∴ Cost of building=
⇒ Cost of building=
∴ Cost of building=
Next calculating depreciation using straight line method ignoring salvage value.
Depreciation deduction=
∴ Depreciation deduction=
Hence, The corporation's current year depreciation deduction for the building is $4872