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The following information applies to the two next questions.) Suppose that you buy an office building for $1.2M. Approximately 40% of the value of the

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The following information applies to the two next questions.) Suppose that you buy an office building for $1.2M. Approximately 40% of the value of the property is land. You sell the property at the end of 3 years for $1.5M and take your full depreciation allowance every year you hold the property. Right before you sell the property, you invest $600,000 to replace the roof and repave the parking lot. Your depreciation recovery tax rate is 25% and your capital gains tax rate is 5%. What is your depreciation recovery tax? O $9.230.77 $13,846.15 O $19,636.36 O $25,384,62 $32.727.27 1 pts Question 2 What is your capital gains tax? OSO O $12.230.77 O $15,000.00 O $39.000.00 O $45,000.00 d 42F Cl

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