On May 1, 2008, Empire Properties Corp., a calendar-year taxpayer, purchased an apartment building for $1,000,000, of which $400,000 was allocable to the land. The corporation sold the property this year on September 23, 2018.
a. What was the corporation's depreciation for the building in 2008, using statutory percentages under MACRS?
b. What was the corporation's depreciation for the building in 2018, using statutory percentages under MACRS?
a. $600,000 × .02273 = $13,638. p. C-7. Table 7 in Appendix C.
b. $600,000 × .03636 × 8.5/12 = $15,453. p. C-7. Table 7 in Appendix C.
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