Question On October 1st, you purchased a residential home in which to locate your professional office for $350,000. The appraisal is divided into $80,000 for the land and $270,000 for the building. (a) In your first year of ownership, how much can you deduct for depreciation for tax purposes? (b) Suppose that the property was sold at $375,000 at the end of fourth year of ownership. What is the book value of the property? Question On October 1st, you purchased a residential home in which to locate your professional office for $350,000. The appraisal is divided into $80,000 for the land and $270,000 for the building. (a) In your first year of ownership, how much can you deduct for depreciation for tax purposes? (b) Suppose that the property was sold at $375,000 at the end of fourth year of ownership. What is the book value of the property?