Answer:
correct option is c. $1,364
Explanation:
given data
purchases house = $174,000
cost of the home = $100,000
cost of the land = $74,000
solution
we know that here MACRS depreciation deduction is here on the $100000
because home only residential real property
and land is not depreciated assets
so here depreciation rate is 1.364 %
so that maximum depreciation deduction allowed is = $100,000 × 1.364
maximum depreciation deduction allowed = 1364
so correct option is c. $1,364
