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Upon graduation, Mr. James Belushi, Mr. Luis Armstrong, and Mr. John Dutton decide to form an LLC called BAD Company Investments, with a potential purchase

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Upon graduation, Mr. James Belushi, Mr. Luis Armstrong, and Mr. John Dutton decide to form an LLC called "BAD Company Investments," with a potential purchase of a 40-unit apartment building in Stillwater close to the OSU campus. Before signing the contract, BAD Company Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $500,000 for the land and $2,000,000 for the apartment building for a total of $2,500,000. If the purchase takes place in June and assuming BAD Company Investments plans to sell the apartment building in March of the fourth year, answer the below question. Using MARCS, what is the book value of the property after year two (B2)? O $2,388,000 $ 1,960,600 $ 1,815,400 O$ 1,888,000 Question 4 10 pts Upon graduation, Mr. James Belushi, Mr. Luis Armstrong, and Mr. John Dutton decide to form an LLC called "BAD Company Investments," with a potential purchase of a 40-unit apartment building in Stillwater close to the OSU campus. Before signing the contract, BAD Company Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $500,000 for the land and $2,000,000 for the apartment building for a total of $2,500,000. If the purchase takes place in June and assuming BAD Company Investments plans to sell the apartment building in March of the fourth year, answer the below question. Using MARCS, what is the book value of the property after year one (B4)? $ 2,450,750 $ 1,942,420 $ 1,960,600 $ 2,460,600

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