Last year, a corporation purchased an oﬃce building for $220,000, of which $30,000 was allocated to the land on which the building was located. fte building's salvage value was estimated to be $50,000. fte corporation's current year depreciation deduction for the building is:

Question

Quizplus · Accepted Answer

Land is not depreciable
 Subtracting this cost leaves $190,000 as the cost of the building. Depreciation is calculated using the straight-line method over 39 years, and ignoring salvage value: $190,000/39 = $4,872.

Last Year, a Corporation Purchased an Oﬃce Building for $220,000