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please show steps and dont use computer Upon graduation, Mr. Maximiliem Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called
please show steps and dont use computer
Upon graduation, Mr. Maximiliem Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called "BAD Company Investments," with a potential purchase of a 40-unit apartment building in Stillwater close to the OSU campus. Before signing the contract BAD Company Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $500,000 for the land and $1,500,000 for the apartment building for a total of $2,000,000. If the purchase takes place in June, and assuming BAD Company Investments plans to sell the apartment building in March of the fourth year, answer questions 1 - 4 below. (10) B 3. Using MARCS, what is the depreciation write-off for year 4 (d)? A. $ 7,500 B. $11,400 C. $15,200 D. $18,700 (10) D 4. Using MACRS, what is the book value at the time the property is sold in year four (B4)? A. $1,800,000 B. $1,750,000 C. $1,575,000 D. $1,350,000 Upon graduation, Mr. Maximiliem Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called "BAD Company Investments," with a potential purchase of a 40-unit apartment building in Stillwater close to the OSU campus. Before signing the contract BAD Company Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $500,000 for the land and $1,500,000 for the apartment building for a total of $2,000,000. If the purchase takes place in June, and assuming BAD Company Investments plans to sell the apartment building in March of the fourth year, answer questions 1 - 4 below. (10) B 3. Using MARCS, what is the depreciation write-off for year 4 (d)? A. $ 7,500 B. $11,400 C. $15,200 D. $18,700 (10) D 4. Using MACRS, what is the book value at the time the property is sold in year four (B4)? A. $1,800,000 B. $1,750,000 C. $1,575,000 D. $1,350,000Step by Step Solution
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