An example of an expense allowed as a deduction under Code Sec. 162(a) would be:

an expense incurred while operating an illegal gambling business.

a government imposed penalty.

both a and b.

Neither a nor b.

In March 2015, a corporation purchased residential real estate (an apartment complex) at a total cost of $250,000. Of this amount, $50,000 was allocated to the underlying land. What is the corporation's allowable depreciation deduction for 2015 under MACRS? (Ignore IRC 179 and bonus depreciation.

$5,758

$5,128

$6,350

$7,272