Jordan has owned an apartment complex since February 2, 2010. He paid cash down payment of $160,000 for the complex and financed $2,840,000 with a 30-year 5% recourse note with Chase Bank. The monthly mortgage payment is $15,245.73. Jordan has 100 units rented for $900 per month.

27.5 year Property Depreciation Rate for Recovery Period
	Month
Year	1	2	3	4	5
1	3.485%	3.182%	2.789%	2.576%	2.273%
2-9	3.636	3.636	3.636	3.636	3.636

39 year Property Depreciation Rate for Recovery Period
	Month
Year	1	2	3	4	5
1	2.461%	2.247%	2.033%	1.819%	1.605%
2-9	2.564	2.564	2.564	2.564	2.564

What is the annual depreciation for the building for year 7?

• A. $72,818
• B. $103,262
• C. $76,920
• D. $109,080