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System (MACRS) (LO 8.2) On October 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $263,300. Holly also

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System (MACRS) (LO 8.2) On October 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $263,300. Holly also owns another residential apartment building that she purchased on August 15, 2020, with a cost basis of $466,000 Click here to access the depreciation tables. If required, round Intermediate calculations and final answers to nearest dollar. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS. 15,228 b. Calculate Holly's total depreciation deduction for the apartments for 2021 using MACRS. 26,517 TABLE 8.5 Straight-Line Depreciation for Real Property Assuming Mid-Month Convention 275-Year Residential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service) Recovery Year(s) 10 11 12 1 3.182 2.879 3.636 1.364 1.061 2-18 3.485 3.636 3.637 0.152 3.636 19-27 3.636 3.637 2.273 0.000 3.637 2.576 2.273 1.970 1.667 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 2.879 3.182 3.485 3.636 0.000 0.000 0.000 0.152 0.758 3.636 3.637 3.636 3.637 0.455 3.636 3.637 3.636 3.637 28 3.636 3.636 3.637 3.636 1.667 2.576 0.000 3.636 29 0.000 3.636 1.061 0.455 0.758 1.364 39-Year Nonresidential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 1 an a 10 11 12 2.461 2.564 2.033 2.564 0.535 2.247 2.564 0.321 0.107 2-39 40 1.819 2.564 0.749 1.605 2.564 0.963 1.391 2.564 1.177 1.177 2.564 0.963 2.564 1.605 0.749 2.564 0.321 2.564 2.247 2.564 0.107 2.564 2.033 0.535 1.391 1.819 2.461 The official tables contain a separate row for each year, For ease of presentation, certain years are grouped together in these two tables. In some instances, this will produce a difference of .001 percent when compared with the official tables

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