Assume that you are a developer. Last year you completed a commercial real estate project and the building has just completed its first full year of service. The land cost $15M and the sum of hard and soft costs were $85M. You are preparing your tax returns and would like to compute the depreciation. Assume that commercial properties are depreciated on a straight line basis over 39 years and you can ignore cost segregation for now. What is the depreciation charge per year?

2,564,103

2,179,487

2,225,567

2,546,103