Jenny Constructed a Building for Use as a Residential Rental

question 62

Multiple Choice

Jenny constructed a building for use as a residential rental property. The cost of the building was $82,488, and it was placed in service on August 1, 1991. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2015 for tax purposes?

• A)$2,250
• B)$3,000
• C)$6,000
• D)$6,547
• E)None of the above

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Definitions:

Subcutaneous Layer

The layer of tissue beneath the skin that consists of fat and connective tissue, providing insulation and energy storage.

Albinism

A genetic condition characterized by the absence of pigment in the skin, hair, and eyes, resulting in very light coloring and increased sensitivity to sunlight.

Melanin

A pigment produced by melanocytes within the skin, responsible for skin, eye, and hair color, and provides protection against UV radiation.

Collagen Synthesis

The biological process by which cells produce collagen, a vital protein that gives structure and strength to skin, bones, and connective tissues.