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OLga [1]
3 years ago
8

Simmons LLC purchased an office building and land several years ago for $250,000. The purchase price was allocated as follows: $

200,000 to the building and $50,000 to the land. The property was placed in service on October 2. If the property is disposed of on February 27 during the 10th year, calculate Simmons's maximum depreciation in the 10th year.
Business
1 answer:
AysviL [449]3 years ago
4 0

Answer: $641

Explanation:

Based on the information that have already bee given in the question, if the property is disposed of on February 27 during the 10th year, then Simmons's maximum depreciation in the 10th year will be calculated as:

= 200000 × 2.564% × 1.5/12

= 200000 × 0.02564 × 0.125

= $641

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