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Upon graduation, Mr. Maximilien Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called BAD Company Investments, with a potential purchase

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Upon graduation, Mr. Maximilien Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen 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 questions 1-4 below. (10)1. Using MACRS, what is the depreciation write-off for year 1 (dr) A. S34,500 B. S36,250 C$39,400 . $49,250

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