Lincoln purchases nonresidential real property costing $300,000 and places it in service in March 2012.What is Lincoln's 2013 depreciation on the property?

Question

Quizplus · Accepted Answer

Nonresidential real property is depreciated over 39 years using the straight-line method and the mid-month convention. For 2013, Lincoln would calculate the depreciation as $300,000 / 39 = $7,692.31, rounded to $7,692.

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