Your company just bought property consisting of land and a building to use for manufacturing. It was purchased for $175K with the land appraised at $75K. You bought the property on Aug 20th of 2015. It was sold in 2017 on Dec 1st for $180K. The land was still appraised at $75K

A) What can be depreciated for tax purposes on this purchase? Circle the correct answer

Land

Building

Land and Building

B) What is the depreciation amount that can be deducted from the company's business income to reduce taxable income in

2015

2016

2017

C) If the business income tax rate is 20% and the capital gain tax rate is 15%, how much extra tax (beyond the income tax on profits) must be paid when the property is sold (2017)?