Shelley Purchased a Residential Apartment for $1,400,000 and Placed It

question 110

Multiple Choice

Shelley purchased a residential apartment for $1,400,000 and placed it in service on September 5. Which of the following statements is false?

• A) Shelley must allocate the purchase price between the non-depreciable land and the depreciable building.
• B) Shelley is allowed one half-year of MACRS depreciation with respect to the apartment building this year.
• C) MACRS depreciation on the building is computed under the straight-line method.
• D) None of these statements are false.

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