An Office Building Was Purchased on December 9th Several Years

question 27

Short Answer

An office building was purchased on December 9th several years ago for $2,500,000. The purchase price was allocated as follows: building $1,900,000, landscaping $100,000, and land $500,000. During the current year, the 10th year, the building was sold on March 10th. Calculate the maximum depreciation expense for the real property during the current year, rounded to the nearest whole number.

---

Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Good Alternative

A suitable or preferable option that serves as a substitute for something else.

Present Alternative

Offering a different option or solution in response to a problem or proposal.

Easy Acceptance

The likelihood of being readily or quickly approved or admitted, often with minimal criteria or examination.