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IV. Brown operates a business. On February 20, 2020 he purchased an office building to be used in his business for $900,000. On April 8,
IV. Brown operates a business. On February 20, 2020 he purchased an office building to be used in his business for $900,000. On April 8, 2020 he purchased equipment (Z-year property) to be used in his business for $45,000. On May 1, 2020 he purchased computers (5-year property) to be used in his business for $100,000. On May 15, 2020 he purchased office furniture (2-year property) to bused in his business for $24,000. On October 10, 2020 he purchased a car (5-year property) to be used in his business for $60,000. The car was used 95% of the time for business He did not elect to use purposes and 5% of the time for personal use. the limited expensing election. He did not elect to use the bonus depreciation option. He elected to use MACRS for the office building, the statutory percentage under MACRS for the computers and the car, and the straight-line option under MACRS for the equipment and the office furniture. 1. Required: Determine the amount of depreciation expense that may be deducted on Brown's 2020 tax return. 2. Determine the amount of depreciation expense that may be deducted on Brown's 2021 tax return. 3. Assuming that Brown sold the office building on July 13, 2022, determine the amount of depreciation expense on the office building that may be deducted on Brown's 2022 tax return
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