Deck 10: Cost Recovery on Property: Depreciation, Depletion, and Amortization

Question 1

MACRS applies to new and used depreciable personal property used for the production of income.

Answer 1

True

Question 2

Which of the following assets would be allowed a depreciation deduction?
I)A truck used to provide transportation to a job site.
II)A car used for personal purposes.
III)An apartment building rented out for the production of rental income.
IV)A personal-use computer of the taxpayer.
​

A)Only statement II is correct.
B)Statements II and IV are correct.
C)Only statement I is correct.
D)Statements I and III are correct.
E)All of the assets are depreciable.

Answer 2

D

Question 3

Which of the following would not be allowed a depreciation deduction?
I)Inventory.
II)Business equipment.
III)Land acquired as an investment.
IV)Cattle used in a dairy herd.
​

A)Only statement I is correct.
B)Statements I and III are correct.
C)Statements I, III and IV are correct.
D)Only statement IV is correct.
E)All of the assets are depreciable.

Answer 3

B

Question 4

Under current law, taxpayers must use regular MACRS.

Question 5

To be considered predominately used in a trade or business under the listed property rules, more than 75% of an asset's total use for each taxable year must be related to the taxpayer's trade or business.

Question 6

In most cases, the taxpayer may continue to use percentage (statutory) depletion after the initial basis has been fully recovered. In other words, the taxpayer's depletion deduction can exceed the cost of the depletable asset.

Question 7

The mid-year convention is used for personal property only.

Question 8

Felix purchases the franchise rights to a new sports team and will be able to amortize the cost over the 15-year amortization period for intangibles.

Question 9

Which of the following would be allowed a depreciation deduction?
I)Inventory.
II)Land acquired as an investment.
III)Residence used as rental property.
IV)Airplane used by company controller to attend accounting conference.
​

A)Only statement III is correct.
B)Only statement IV is correct
C)Statements III and IV are correct.
D)Statements II, III, and IV are correct.
E)All of the assets are depreciable.

Question 10

The earlier the depreciation deduction can be taken, the greater the present value of the tax savings will be to the taxpayer.

Question 11

To compute cost depletion, you must know the basis subject to depletion, the recoverable quantity of the natural resource, and the quantity of the natural resource sold during the year.

Question 12

If more than 40% of the depreciable basis of personal property is placed in service during the last three months of the tax year, the taxpayer must use the mid-quarter convention.

Question 13

Sally purchased new equipment for her consulting business. She allocates the Section 179 deduction among the new assets. One piece of equipment cost $1,000,000 and was allocated one-half of the allowable Section 179 deduction and therefore has a depreciable basis of $500,000.

Question 14

Which of the following assets would not be allowed a depreciation deduction?
I)A business computer used to process payroll and maintain a company's general ledger.
II)A personal residence of a taxpayer.
III)A building rented out for the production of rental income.
IV)A yacht rented to a fishing party.
​

A)Only statement II is correct.
B)Statements II and IV are correct.
C)Only statement I is correct.
D)Statements I and III are correct.
E)All of the assets are depreciable.

Question 15

Under the computation of the alternative minimum tax, the Alternative Depreciation System may be used but is not required.

Question 16

Pedro purchased used delivery equipment costing $80,000 and used computers costing $90,000 (the only assets purchased) that are used in his business. He may allocate his section 179 deduction to either or both assets.

Question 17

While Congress has enacted several different depreciation methods, all currently owned assets are depreciated using the method in effect when the asset was placed in service.

Question 18

MACRS eliminates several sources of potential conflict between the IRS and taxpayers concerning an asset's useful life and the calculation of the depreciation deduction.

Question 19

Periodic capital recovery deductions for tax purposes include
I)Depletion.
II)Amortization.
III)Depreciation.
IV)Proration.
​

A)Statements I and III are correct.
B)Only statement I is correct.
C)Statements I, II and III are correct.
D)Statements I, II, and IV are correct.
E)Statements I, II, III, and IV are correct.

Question 20

The Section 179 expense deduction is allowed on all depreciable and tangible property used in a trade or business.

Question 21

The Section 179 election promotes which of the following tax concept(s) or doctrine(s)?
I)Claim of Right Doctrine.
II)Administrative Convenience Concept.
III)Tax benefit rule.
IV)Substance-Over-Form Doctrine.
​

A)Only statement I is correct.
B)Only statement II is correct.
C)Statements I, II, and IV are correct.
D)Statements II and IV are correct.
E)Statements I, II, III, and IV are correct.

Question 22

During 2018, Linda has a $12,000 net loss from her beauty salon. Her spouse, Bart, earns $23,000 as a tennis professional. During 2018, Bart purchases $215,000 of Section 179 equipment for his business. What is the amount of Linda and Bart's Section 179 deduction for 2018?

A)$- 0 -
B)$10,000
C)$11,000
D)$23,000
E)$215,000

Question 23

Cruz Copy Shop purchases a new copy machine in July 2018 for $30,000. No other depreciable assets are placed in service in 2018. Since Cruz Copy Shop expects to be in a much higher tax bracket in future years, it desires to minimize its current cost recovery amount to the fullest extent possible. What is the amount of Cruz Copy Shop's MACRS straight-line depreciation for 2018?

A)$1,500
B)$2,143
C)$3,000
D)$3,213
E)$4,500

Question 24

In 2018, Oscar purchases $2,150,000 of equipment. The taxable income of the business before any Section 179 deduction is $20,000. What is Oscar's maximum Section 179 deduction in 2018?

A)$20,000
B)$25,000
C)$250,000
D)$500,000
E)$350,000

Question 25

Watson Company purchases used equipment (5-year MACRS property) for $1,100,000 on July 8, 2018. Watson does not want to use bonus depreciation. What is Watson' maximum allowable cost recovery deduction for 2018 on the equipment if this is the only purchase of equipment for 2018?

A)$940,000
B)$1,000,000
C)$1,020,000
D)$1,040,000
E)$1,100,000

Question 26

Sophia purchases a completely furnished condominium in Breckenridge, Colorado. She uses the condo as a rental property. Which of the following assets are subject to periodic cost recovery?
I)Land.
II)Furniture.
III)Building.
IV)Trout fishing equipment.
V)Kitchen appliances.
​

A)Only statement III is correct.
B)Statements II and III are correct.
C)Statements II, III, IV, and V are correct.
D)Statements I, and III are correct.
E)Statements II, III, and V are correct.

Question 27

Which of the following is not part of the modified accelerated cost recovery system (MACRS)?

A)Salvage value is ignored.
B)Used property can use MACRS.
C)Straight-line depreciation is allowed.
D)Sum-of-the-years digits depreciation is allowed.
E)All of the above are part of MACRS.

Question 28

Davis, Inc., a motorcycle wheel manufacturer, purchased a new spoke machine in 2018 for $200,000. What are the tax effects of this purchase?
I)If taxable income is $100,000, then $100,000 can be expensed in 2018.
II)No Section 179 election is allowed if Davis decides to use a $200,000 depreciable basis.
III)If Davis had purchased a total of $4,400,000 of equipment in 2018, the corporation can deduct none of the purchases in 2018 through use of the Section 179 election.
​

A)Only statement I is correct.
B)Statements I and II are correct.
C)Statements II and III are correct.
D)Statements I and III are correct.
E)Statements I, II, and III are correct.

Question 29

In 2018, Steve purchases $975,000 of equipment. The taxable income of the business before any Section 179 deduction is $10,000. What is Steve's maximum Section 179 deduction in 2018?

A)$10,000
B)$- 0 -
C)$25,000
D)$975,000
E)$500,000

Question 30

Which of the following statements related to the Section 179 election to expense is (are) true?
I)A Section 179 deduction can be claimed on tangible personal property
II)A Section 179 deduction can be claimed on property held for the production of income.
III)A Section 179 deduction can be claimed on real property.
IV)A Section 179 deduction is allowed only for assets used in trade or business.
​

A)Only statement I is true.
B)Only statements I and II are true.
C)Only statements I, II, and III are true.
D)Only statements I and IV are true.
E)All of the statements are true.

Question 31

During 2018, Witt Processing Corporation places $210,000 of Section 179 property in service for use in its business. What is the amount of Witt Processing's maximum Section 179 deduction for 2018?

A)$210,000
B)$200,000
C)$25,000
D)$105,000
E)$50,000

Question 32

Sorensen Corporation purchases equipment in 2018 for $200,000. Sorensen has substantial taxable income and desires to minimize this amount to the fullest extent possible. How much can Sorensen deduct under Section 179?

A)$25,000
B)$30,000
C)$50,000
D)$20,000
E)$200,000

Question 33

Qualified Section 179 property for a retail store includes
I)Store shelving.
II)Company auto used by salesmen.
III)Sidewalks in front of the store.
IV)Delivery van owned by the store.
​

A)Only statement I is correct.
B)Only statement III is correct.
C)Statements I and IV are correct.
D)Statements II and III are correct.
E)Statements I, II, and IV are correct.

Question 34

Wu Copy Shop purchases a new copy machine in July 2018 for $30,000. No other depreciable assets are placed in service in 2018. Since Wu Copy Shop expects to be in a much higher tax bracket in future years, it desires to minimize its current cost recovery amount to the fullest extent possible. What is the amount of Wu Copy Shop's ADS depreciation for 2018?

A)$1,500
B)$3,000
C)$4,500
D)$5,400
E)$6,000

Question 35

To compute depreciation using MACRS on an asset purchased today, you need to know
I)the asset's depreciable basis.
II)the recovery period of the asset.
III)the first and last year convention that applies to the asset's class.
IV)whether you want to minimize or maximize the current year's depreciation.
​

A)Only statement II is correct.
B)Statements I and II are correct.
C)Statements I, III, and IV are correct.
D)Statements II and III are correct.
E)Statements I, II, III, and IV are correct.

Question 36

Carolyn purchases a new trucks (5-year MACRS property) costing $3,500,000 for use in her floral business on January 5, 2018. What is her maximum allowable cost recovery on the trucks in 2018?

A)$-0-
B)$700,000
C)$1,500,000
D)$2,300,000
E)$3,500,000

Question 37

In 2018, Sanford Corporation purchases and places in service $3,370,000 of equipment for its manufacturing business. What portion of the $3,370,000 may Sanford elect to treat as a Section 179 expense?

A)$-0-
B)$15,000
C)$20,000
D)$25,000
E)$130,000

Question 38

In May 2018, Preston purchases 5-year MACRS property costing $150,000 and 7-year MACRS property costing $60,000. Preston's income is $100,000. Preston does not want to claim bonus depreciation. If Preston wishes to maximize his total 2018 cost recovery deduction, what will his total cost recovery deduction be on the properties purchased in 2018?

A)$100,000
B)$122,000
C)$210,000
D)$42,000
E)$34,430

Question 39

On June 1, 2018, AZ Construction Corporation places a $2,000,000 crane (7 year life) in service. AZ does not want to use bonus depreciation. It placed no other assets in service during the year. What is the amount of AZ Construction's maximum depreciation deduction for the crane for 2018?

A)$285,800
B)$400,000
C)$1,200,000
D)$1,142,900
E)$2,000,000

Question 40

In 2018, Henry purchases $210,000 of equipment with a useful life of 7 years. The taxable income of the business before any Section 179 deduction is $100,000. Henry elects not to take bonus depreciation. What is Henry's maximum depreciation deduction in 2018?

A)$-0-
B)$42,865
C)$100,000
D)$210,000
E)$115,719

Question 41

Aaron purchases a taxicab (5-year MACRS property) for $20,000 on December 3, 2018. This is the only business asset Aaron acquires in 2018. He does not desire to use the Section 179 election and elects not to take bonus depreciation. What is the maximum amount of depreciation that he can deduct in 2018?

A)$1,000
B)$3,000
C)$4,000
D)$10,500
E)$14,000

Question 42

What is the MACRS recovery period for a video game used in an arcade?

A)3 years.
B)5 years.
C)6 years.
D)7 years.
E)10 years.

Question 43

Rafael bought an apartment building on March 27, 2011, at a cost of $2,000,000 (exclusive of the cost allocated to the land). He sells the building on November 3, 2018. What is Rafael's cost recovery deduction on the building for 2018 if he wants to take the maximum deduction allowable on the building?

A)$44,870
B)$63,630
C)$66,660
D)$69,690
E)$72,740

Question 44

The mid-quarter convention
I)never applies to real estate.
II)is required when more than 30% of the depreciable basis of certain property is placed into service during the last 3 months of the tax year.
​

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question 45

What is the Alternative Depreciation System (ADS) recovery period for a light general purpose truck?

A)3 years.
B)5 years.
C)6 years.
D)10 years.
E)12 years.

Question 46

Brent purchases a new warehouse building on May 16, 2017, for $6,000,000 (exclusive of the cost of the land). What is Brent's 2018 depreciation deduction?

A)$- 0 -
B)$76,924
C)$153,840
D)$119,040
E)$400,000

Question 47

Ying pays $170,000 for an office building on August 27, 2017, to use in his consulting business. He properly allocates $150,000 to the building and $20,000 to the land. What is Ying's 2018 depreciation deduction on the property?

A)$1,124
B)$1,443
C)$1,923
D)$3,846
E)$5,454

Question 48

Residential rental real estate placed in service on July 17, 2018, is depreciated over

A)39 years, straight-line method, mid-month convention.
B)40 years, straight-line method, mid-month convention.
C)27.5 years, 150%-declining-balance method, mid-year convention.
D)27.5 years, straight-line method, mid-month convention.
E)39 years, 150%-declining-balance method, mid-year convention.

Question 49

On March 23, 2018, Saturn Investments Corporation purchases a $5,000 computer (5-year property) for business-use. On November 27, 2018, it pays $4,000 for new office furniture (7-year property). It does not wish to use the Section 179 election to expense and elects not to take bonus depreciation. How much depreciation may Saturn deduct on the computer for 2018?

A)$1,000
B)$1,750
C)$2,625
D)$3,325
E)$3,500

Question 50

The mid-year convention under MACRS provides that

A)Depreciation is allowable in the year of acquisition of qualified property only if the property is placed in service in the first one-half of that year.
B)One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of disposition.
C)Depreciation is allowable in the year of disposition only if the property is disposed of in the last one-half of that year.
D)The cost recovery deduction is based on the number of months the property was in service in the year of acquisition. Therefore, one-half month's cost recovery is allowable for the month in which the property is placed in service and for the month of disposition.

Question 51

Serena owns a van that she paid $22,000 for in 2011 and used exclusively for personal purposes until May 9, 2016, when she began using the van in her plumbing business. On May 9, 2016, a comparable van was selling for $13,000. Serena sells the van on October 28, 2018. Assuming that the van is 5-year MACRS property, it is not listed property, and that Serena did not make the Section 179 election to expense on the van, what is her allowable depreciation deduction in 2018?

A)$749
B)$1,248
C)$1,267
D)$2,112
E)$2,496

Question 52

The mid-quarter convention under MACRS provides that

A)Depreciation is allowable in the year of acquisition of qualified property only if the property is placed in service in the first one-fourth of that year.
B)One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of disposition.
C)The cost recovery deduction is based on the number of months the property was in service in the year of acquisition. Therefore, one-half month's cost recovery is allowable for the month in which the property is place in service and for the month of disposition.
D)Any property placed in service in the last 3 months of a tax year is depreciated using this convention.
E)Depreciation is calculated from the middle of the quarter in which an asset is placed in service through the end of the year.

Question 53

Nonresidential commercial realty placed in service on March 2, 2018, is depreciated over

A)27.5 years, 200%-declining-balance method, mid-year convention.
B)31.5 years, straight-line method, mid-month convention.
C)31.5 years, 200%-declining-balance method, mid-year convention.
D)39 years, straight-line method, mid-month convention.
E)40 years, straight-line method, mid-month convention.

Question 54

Shannon purchases equipment classified as 3-year property on December 19, 2018, at a cost of $100,000. Section 179 is not elected and an election is made not to take bonus depreciation and Shannon does not use the straight-line method. Shannon purchased no other depreciable property in 2018. What is the amount of the MACRS depreciation deduction for 2018?

A)$5,000
B)$8,330
C)$20,000
D)$33,333

Question 55

What is the MACRS recovery period for an office desk?

A)3 years.
B)5 years.
C)6 years.
D)7 years.
E)10 years.

Question 56

MACRS requires the use of one of three conventions. For personal property, the general and most common convention is

A)mid-life
B)mid-quarter.
C)mid-month.
D)mid-year.

Question 57

Ralph buys a new truck (5-year MACRS property) to use in his landscaping business on May 13, 2018, at a cost of $18,000. On November 5, 2018, Ralph takes advantage of an end of the season clearance sale to purchase various landscaping equipment (7-year MACRS property) costing $34,000. Assuming that Ralph does not wish to immediately expense any of the cost of the property purchased this year and elects not to take bonus depreciation, what is his 2018 maximum allowable cost recovery deduction?

A)$2,114
B)$5,714
C)$8,459
D)$2,086
E)$15,500

Question 58

Weston purchases equipment classified as 7-year property on January 5, 2017, at a cost of $80,000. Section 179 was not elected. He sells the equipment on February 12, 2018. What is Weston's 2017 depreciation deduction?

A)$- 0 -
B)$3,498
C)$6,996
D)$9,794
E)$13,992

Question 59

What is the MACRS recovery period for a warehouse placed in service on August 31, 2018?

A)10 years.
B)27.5 years.
C)31.5 years.
D)39 years.
E)40 years.

Question 60

The mid-month convention under MACRS provides that

A)Depreciation is allowable for the month of disposition only if the property is disposed of in the last one-half of that month.
B)Depreciation is allowable for the month of acquisition of qualified property only if the property is placed in service in the first one-half of that month.
C)One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of disposition.
D)The cost recovery deduction is based on the number of months the property was in service in the year of acquisition. Therefore, one-half month's cost recovery is allowable for the month in which the property is placed in service and for the month of disposition.

Question 61

Wellington Apartments purchases an apartment building on November 9, 2018, for $1,000,000 (exclusive of the cost allocated to the land). What is the 2018 MACRS depreciation deduction?

A)$3,970
B)$4,550
C)$7,580
D)$36,364
E)$45,500

Question 62

During 2018, Williams Company purchases and places in service office equipment with a cost of $40,000. The equipment is 7-year MACRS property. What is its 2018 depreciation deduction for purposes of the alternative minimum tax?

A)$2,000
B)$2,857
C)$3,000
D)$4,000
E)$5,714

Question 63

Delta Freight Company purchases 10 delivery vans on April 4, 2018, at a total cost of $366,000. In prior years, Delta used the regular MACRS system on all of its delivery vans (the delivery vans are 5-year MACRS property and are not limited by listed property rules). Delta's annual income is $15,000 before the depreciation deduction. What is Delta's maximum cost recovery deduction on the vans in 2018?

A)$15,000
B)$73,200
C)$85,200
D)$91,200
E)$366,000

Question 64

Mike purchases 5-year class listed property for $3,000 during the current year. He uses the computer 40% of the time in his consulting business. Mike would like to maximize his cost recovery deduction. What is his allowable cost recovery deduction on the computer?

A)$- 0 -
B)$120
C)$180
D)$300
E)$1,200

Question 65

Chestnut Furniture Company purchases a delivery van on June 14, 2018, at a cost of $30,000. The delivery van has a 5-year MACRS life and an ADS recovery period of 5 years. What is Chestnut's minimum cost recovery deduction on the van in 2018?

A)$- 0 -
B)$3,000
C)$4,500
D)$6,000
E)$26,850

Question 66

Mountain View Development Co. purchases a new high volume paper shredder for use in their document management department for $20,000 on November 7 of 2018. It was the only piece of depreciable property placed in service during 2018. The paper shredder is 7-year MACRS property, the Section 179 election to expense was not exercised and bonus depreciation was not elected. What is Mountain View's 2018 depreciation deduction on the paper shredder?

A)$714
B)$2,498
C)$2,812
D)$2,980

Question 67

Which of the following correctly describe(s) cost recovery of automobiles placed in service in 2018?

A)Total depreciation, including bonus depreciation, cannot exceed $10,000.
B)No cost recovery is allowed if the automobile is used 50% or less for trade or business.
C)The amount of the depreciation deduction cannot exceed $18,000.
D)No cost recovery is allowed for automobiles used for production of income (i.e. rental) activities.

Question 68

On July 17, 2018, Elise purchases office furniture (7-year property) costing $50,000 for use in her business. She wishes to use the Section 179 election but does not elect to use bonus depreciation. Her taxable income before the Section 179 depreciation deduction is $25,000. What is the maximum total cost recovery deduction Elise can take for the current year?

A)$7,145
B)$24,287
C)$23,573
D)$28,573
E)$29,462

Question 69

Lindale Rentals places an apartment building in service on November 22, 2018. The building's depreciable basis is $3,300,000. What is Lindale Homes' 2018 depreciation deduction on the property?

A)$7,507
B)$15,015
C)$59,994
D)$104,990

Question 70

Wellington Company purchases a new warehouse on August 24, 2006, for $1,000,000 (exclusive of the cost allocated to the land). What is the 2018 MACRS depreciation deduction?

A)$11,900
B)$25,640
C)$31,740
D)$48,694

Question 71

Greenville Floral places a new tractor (7-year MACRS) into service on January 8, 2018. They pay $28,000 for the tractor. This is the only business asset placed into service during this year. Greenville Floral wants to minimize the amount of depreciation deductible in 2018. What is Greenville Floral's cost recovery for 2018?

A)$1,400
B)$2,000
C)$2,999
D)$4,000
E)$4,501

Question 72

On August 3, 2018, Yang purchases office furniture (7-year property) costing $21,000 for use in her business. She does not wish to use the Section 179 election, elects not to use bonus depreciation and makes the election to use the straight-line method over the MACRS recovery period. What is Yang's 2018 cost recovery deduction?

A)$ 500
B)$ 1,500
C)$ 3,000
D)$20,000
E)$21,000

Question 73

During 2018, Duncan purchases and places in service office equipment with a cost of $40,000. The equipment is 7-year MACRS property with an ADS recovery period of 10 years. Duncan desires to avoid the AMT. What is his minimum 2018 depreciation deduction?

A)$2,000
B)$2,857
C)$3,000
D)$4,000
E)$5,714

Question 74

Jim places a new lift truck (7-year MACRS property) into service on January 16, 2018. He pays $30,000 for the truck. This is the only business asset placed into service during this year. Jim does not desire to use the Section 179 election. How much depreciation may Jim deduct for 2018?

A)$- 0 -
B)$4,287
C)$6,000
D)$8,574
E)$30,000

Question 75

Listed property rules include the following:
I)If listed property is not predominantly used in the taxpayer's business, the business-use portion of the asset cannot be depreciated.
II)If more than 50 percent of the listed property's total use for each year is related to the taxpayer's business, the asset is treated the same as any other mixed-use business asset.
III)When listed property is used 50% or less in the taxpayer's business, the Section 179 expense election does not apply to the asset.
IV)Listed property includes passenger automobiles and trucks.
​

A)Statements I and III are correct.
B)Only statement IV is correct.
C)Statements II and III are correct.
D)Statements II, III, and IV are correct.
E)Statements I, II, III, and IV are correct.

Question 76

Daniel purchases 5-year class listed property on March 2, 2018, for $30,000. It is used 75% for business, and the remainder for personal use. Daniel wishes to maximize his 2018 depreciation deduction. What is Daniel 's 2018 depreciation deduction?

A)$2,250
B)$2,700
C)$3,375
D)$4,500
E)$6,000

Question 77

Mary Wilson purchases a factory building on September 29, 2018, for $4,000,000 (exclusive of the amount allocated to the land). It elects the alternative depreciation system (ADS). What is the 2018 depreciation deduction?

A)$29,167
B)$30,000
C)$42,424
D)$70,833
E)$100,000

Question 78

Why might a taxpayer elect to depreciate assets using the Alternative Depreciation System (ADS)?
I)The taxpayer desires rapid write off of assets.
II)The taxpayer may be close to being subject to the alternative minimum tax.
III)The taxpayer is experiencing a low income time period.
​

A)Statements I and III are correct.
B)Only statement I is correct.
C)Statements II and III are correct.
D)Statements I and II are correct.
E)Statements I, II, and III are correct.

Question 79

Which of the following would not be considered to be Listed Property for depreciation purposes?

A)A camera owned and used by a taxpayer in his real estate business.
B)Boat owned and used by a taxpayer in her fishing business.
C)Taxpayer's automobile that he uses 30% for business purposes.
D)All of the above are listed property

Question 80

Tucker Estates places an apartment building in service on November 22, 2014. The building's depreciable basis is $3,300,000. Tucker Estates sells the building on March 5, 2018. What is Tucker Estates' 2018 depreciation deduction on the property?

A)$15,015
B)$21,828
C)$24,998
D)$119,988