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Beginning on January 1, 2022, Brad started working in his home office. The total cost of his home is $635,000, with $200,000 being the value

Beginning on January 1, 2022, Brad started working in his home office. The total cost of his home is $635,000, with $200,000 being the value of the land. Brad uses 20% of the total area of his home for work purposes. What is the appropriate cost or basis amount that Brad will use to calculate the depreciation?

  • $ 127,000
  • $ 40,000
  • $ 87,000
  • $435,000

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