YumYum Corporation (a calendar-year corporation)moved into a new office building adjacent to its manufacturing plant in 2015.It purchased and placed in service the following assets during 2015: All assets are used 100% for business use.The office building does not include the cost of the land on which it is located that was an additional $300,000.The corporation had $900,000 income from operations before calculating depreciation deductions.If YumYum does not use Section 179 expensing and it elects to use straight-line depreciation on all of its assets,how much is its 2015 depreciation deduction?
A)$17,281
B)$28,972
C)$35,134
D)$35,394

Question

YumYum Corporation (a calendar-year corporation)moved into a new office building adjacent to its manufacturing plant in 2015.It purchased and placed in service the following assets during 2015:  All assets are used 100% for business use.The office building does not include the cost of the land on which it is located that was an additional $300,000.The corporation had $900,000 income from operations before calculating depreciation deductions.If YumYum does not use Section 179 expensing and it elects to use straight-line depreciation on all of its assets,how much is its 2015 depreciation deduction?
A)$17,281 
B)$28,972 
C)$35,134 
D)$35,394

Quizplus · Accepted Answer

(850,000 x 0.02033 = $17,281)+ ([$120,000 + $25,000] x .0714 = $10,353)
([$30,000 + $45,000] x .10 = $7,500)= $35,134.

YumYum Corporation (A Calendar-Year Corporation)moved into a New Office Building