Tucker Estates places an apartment building in service on November 22,2013.The building's depreciable basis is $3,300,000.Tucker Estates sells the building on March 5,2017.What is Tucker Estates' 2017 depreciation deduction on the property?
A)$15,015
B)$21,828
C)$24,998
D)$119,988

Question

Quizplus · Accepted Answer

The property was sold on March 5, 2017, so Tucker Estates is entitled to a depreciation deduction for the period from January 1, 2017, to March 5, 2017. This is a period of 63 days. The annual depreciation deduction is $3,300,000 / 39 = $84,615. The depreciation deduction for the period from January 1, 2017, to March 5, 2017, is $84,615 * 63 / 365 = $24,998.

Tucker Estates Places an Apartment Building in Service on November