[12] Residential rental property that was placed in service during the current year using MACRS is deprcial many years, using which depreciation method and convention? A. 15 years, 150%-declining -balance method, half-year convention. B. 27.5 years, straight-line method, mid-month convention. C. 39 years, straight-line method, mid-month convention. D. 40 years, 200%-declining-balance method, half-year convention. [13] The Bearcat Corporation purchased an apartment building in October of the current year. The cost of the building was $4,000,000 and its estimated life was 40 years. Corporate management wants to know the alternative methods of deducting the cost of the building for tax purposes. The company may use the straight-line method over 27.5 years or can elect to use the A. Straight-line method over a recovery period of 35 or 45 years. B. Straight-line method over a recovery period of any length between 27.5 and 45 years. C. Straight-line method over a recovery period of 30 years. n Declining-balance method at 125% of the straight-line rate using a recovery period of 27.5 or 40 years.