Lincoln purchases nonresidential real property costing $300,000 and places it in service in March 2013.What is Lincoln's 2014 depreciation on the property?

Question

Quizplus · Accepted Answer

Assuming the straight-line method and a useful life of 39 years (the current tax depreciation period for nonresidential real property), the yearly depreciation would be $7,692 ($300,000 ÷ 39). Therefore, Lincoln's 2014 depreciation on the property would also be $7,692.

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