Poplock LLC purchased a warehouse and land during the current year for $350,000. The purchase price was allocated as follows: $275,000 to the building and $75,000 to the land. The property was placed in service on August 12. Calculate Poplock's maximum depreciation for this first year. (Use MACRS Table 5.)(Round final answer to the nearest whole number.)
A)$2,648
B)$3,371
C)$3,751
D)$4,774
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The correct answer is A.The maximum depreciation for the first year is $2,648. This is calculated by multiplying the building cost ($275,000) by the MACRS rate for the first year (3.75%).

Poplock LLC Purchased a Warehouse and Land During the Current