Question 6

Griff LLC purchased an office building and land during the current year for $500,000. The purchase price was allocated as follows: $350,000 to the building and $150,000 to the land. The property was placed in service on August 22. Calculate Griff's maximum depreciation. (Use MACRS Table 5.) 6 Multiple Choice $1,445 O $3,371 $3,751 O $4,815 O o None of the choices are correct. TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 . Month 10 0.535% 2.564 2.033 Month 11 0.321% 2.564 2.247 Month 12 0.107% 2.564 2.461