Assume the client purchases office furniture for $490 on 2/1/X1. Furniture, like most personal property, has a 7-year recovery period. Assuming straight-line depreciation of 1/7 of cost per year is not elected, the client will use double-declining balance, and claim 2/7 of the remaining basis each year. In the year of acquisition, 201, the half-year convention is applied, so the MACRS deduction is $4902/71/2=$70. What is the MACRS depreciation deduction in 202 ? (This question is a repeat from Quiz #2). $70 $210 $140 $120 Roger, an individual, sells an office building for $600,000 that has an adjusted basis of $60,000, resulting in a gain of $540,000. The original cost of the building was $500,000 and $440,000 of straight-line depreciation has been recorded. Roger will reclassify $440,000 (lesser of gain or depreciation) as unrecaptured 1250 gain. The remaining $100,000 (ie, $540,000 total gain - $440,000 unrecaptured 1250 gain) is Sec 1250 gain, treated as STCG Sec 179 gain, treated as ordinary gain Sec. 1231 gain, treated as a LTCG. Sec 1245 , treated as ordinary gain