Guadalupe purchases an office building to use in her business at a cost of $520,000. She properly allocates $20,000 of the cost to the land and $500,000 to the building. Assume that Guadalupe would like to deduct the maximum depreciation on the building. Guadalupe sells the building on October 26, 2019.

Refer to the MACRS Depreciation Tables to answer the following questions.

Note: For intermediate percentage depreciation computations, round to three decimal places.

Hint: Don't forget about mid-month convention in the year of acquisition and/or disposal when calculating depreciation.

Determine her 2019 depreciation deduction if she purchased the building on

a. June 30, 1992. $ 8,600 -incorrect answer

b. June 30, 1994. $ 10,150- correct