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WR&Z Company,a Calendar Year Taxpayer,paid $6,400,000 for a Commercial Office

Question 72

Multiple Choice

WR&Z Company,a calendar year taxpayer,paid $6,400,000 for a commercial office building and allocated $400,000 of the cost to the land and $6,000,000 of the cost to the building.WR&Z place the realty in service on May 11.Refer to the appropriate MACRS Table in Chapter 7 to compute WR&Z's first-year depreciation on the realty.


A) $136,380
B) $102,720
C) $96,300
D) None of the above

Correct Answer:

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