On October 1, you purchased a residential home in which to locate your professional office for $180,000. The appraisal is divided into $30,000 for the land and $150,000 for the building.
(a) In your first year of ownership, how much can you deduct for depreciation for tax purposes?
(b) Suppose that you sold the property at $197,000 at the end of the fourth year of ownership. What is the book value of the property?