Question

e d ou • 40. LCD Corporation purchased residential real property for $385,000 (exclusive of land b cost) and placed it in service on August 16, 2019. Compute MACRS depreciation on the property for 2019 and 2020. 41. Refer to the facts in Problem 40 and assume the property purchased is nonresidential rental property. Compute MACRS depreciation on the property for 2019 and 2020, assuming at the property is not qualified leasehold band improvement, retail improvement or og restaurant property. 45.

Answer 1

41) LCD Corporation purchased residential real property for $385,000 (exclusive of land cost) and placed it in service on August 16, 2019. Compute MACRS depreciation on the property for 2019 and 2020
	Cost	Depreciation Rate	Depreciation
Year 2019 -  Residential Real Estate placed it in service on August 16, 2019.	$         385,000.00	1.36360%	$               5,249.86
Year 2020 -  Residential Real Estate	$         385,000.00	3.6360%	$             13,998.60
42) Refer to the facts in Problem 41 and assume the property purchased is nonresidential rental property. Compute MACRS depreciation on the property for 2015 and 2016, assuming the property is not qualified leasehold improvements, retail improvement, or restaurant property
	Cost	Depreciation Rate	Depreciation
Year 2019 -  Nonresidential Real Estate placed it in service on August 16, 2019.	$         385,000.00	0.96147%	$               3,701.66
Year 2020 -  nonresidential Real Estate	$         385,000.00	2.5640%	$               9,871.40
49) For AGI
50) Commonly incurred by other businesses
51) Appropriate for a particular business
52) d. $2,500,000