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You have just purchased a small apartment complex that has a $1,000,000 depreciable basis. Assume no personal property. You are in the 28 percent ordinary

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You have just purchased a small apartment complex that has a $1,000,000 depreciable basis. Assume no personal property. You are in the 28 percent ordinary tax bracket and 25 percent depreciation recapture bracket. Capital gains will be taxed at 15 percent. You discount future tax benefits from depreciation at 7 percent. Ignore the midmonth convention. Required: What is your annual depreciation deduction? (Round your answer to 2 decimal places.)

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