A commercial property which cost $33,488,000 is considered to have 45% of its total value attributable to land. Plant and equipment represents 8% of cost. The building depreciation allowance is 2.5% and the investors marginal tax rate is 46.5%. What is the reduction in tax liability (depreciation tax shield) attributable to the building allowance for this property?

Select one:

a.

$226,604

b.

$277,247

c.

$295,040

d.

$182,970

e.

$147,479