Question
need help with exam having a hard time with it. Mike Brady purchased an office building on April 12, 2018, for a total of $3
need help with exam having a hard time with it.
- Mike Brady purchased an office building on April 12, 2018, for a total of $3 million of which $800,000 was the value of the land on which the office building was located.
In addition, Mike purchased 7-year class new business equipment for $40,000 on December 11, 2018.He elects not to immediately expense the equipment under 179 and elects not to take the additional first-year depreciation.
Mike purchased no other business assets during 2018.
- Determine Mike's depreciation on the office building for 2018.
Dep. On Apartment Building- 825000
b. Determine Mike's depreciation on the equipment for 2018.
c. If Mike sells the office building on August 29, 2024, how much depreciation deduction will Mike take for the office building for 2024?
d. If Mike sells the equipment on June 1, 2019, how much depreciation deduction will Mike take for the equipment for 2019?
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