Q$.$ On August $10,2017,$ Sophia purchased and placed into service a commercial building $(39$ years

$SL)$ for $$3\mathrm{.}000,000($building $$2,250,000$ and land $$750,000).$ On January $1,2022,$ the commercial

building was contributed to the newly formed partnership S&L Commercial Properties Ltd$.$ At the

time of the contribution the building and land were valued at $$4,500,000($building $$3,500,000$

and land $$1,000,000).$

The initial tax annual tax depreciation equals $$57,692=$$$2,250,\frac{000}{39}$ years. As of December $31,$

$2021,$ the adjusted tax basis of the building was $$1,997,597.$

There are $415\mathrm{.}5$ months remaining the the class life for this commercial building.

Calculate the annual book depreciation using the traditional method found in Regulation $$1\mathrm{.}704-$

$3($b$)$ for $2022.$

Pick a answer.

$$101,083$

$$89,744$

$$86,004$

$$57,692$