I:14-55 Rehabilitation Tax Credit. Bob acquired a certified historic structure and placed it in service August of the current year, as an office for his business. He paid $20,000 for the building (exclusive of the land) and spent $40,000 for renovation costs.

a. What is the rehabilitation tax credit (before limitations)?

b. What is the basis of the building for MACRS depreciation purposes?

c. Compute the depreciation that Bob can take on the building for the current year.