Lincoln purchases nonresidential real property costing $300,000 and places it in service in March 2014.What is Lincoln's 2015 depreciation on the property?

Question

Quizplus · Accepted Answer

Lincoln will use the MACRS depreciation method for nonresidential real property, with a recovery period of 39 years. Using the MACRS depreciation table, the depreciation percentage for year 2 (2015) is 3.636%. 
Thus, the depreciation expense for 2015 is $10,908 ($300,000 x 3.636%).

Lincoln Purchases Nonresidential Real Property Costing $300,000 and Places It