Jenny Constructed a Building for Use as a Residential Rental

question 50

Multiple Choice

Jenny constructed a building for use as a residential rental property.The cost of the building was $180,000,and it was placed in service on August 1,1990.The building has a 27.5-year MACRS life.What is the amount of depreciation on the building for 2013 for tax purposes?

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

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Definitions:

Mineable Phosphate Rocks

Rock formations that contain substantial amounts of phosphate minerals, which are mined for use as fertilizers and other chemical products.

Marine Sediments

Deposits of organic and inorganic particles that accumulate on the ocean floor.

Denitrification

The conversion of nitrate (NO3) to nitrogen gas (N2) by certain bacteria (denitrifying bacteria) in the soil; part of the nitrogen cycle.

Ammonification

The conversion of nitrogen-containing organic compounds to ammonia (NH3) by certain soil bacteria (ammonifying bacteria); part of the nitrogen cycle.