A residence was constructed in 1986 for $72,000 on a lot that cost $14,000. Before the...

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Accounting

A residence was constructed in 1986 for $72,000 on a lot thatcost $14,000. Before the property was converted to rental use inthe current year, a finished porch costing $8,000 was added and a$3,000 casualty loss was claimed. If the fair market value on thedate of conversion to rental use was $84,000 ($74,000 for the houseand $10,000 allocated for the land), what is the depreciablebasis?
A.$84,000
B.$74,000
C.$72,000
D.$77,000
During the current year, Liquid Corporation, a calendar-yeartaxpayer, purchased and placed in service the following assets onthe following dates:
Machine
$ 6,400
February 1
Truck
20,000
October 15
Computer
8,000
December 1
The three assets are all 5-year property under MACRS. The Sec.179 and bonus depreciation deductions were not elected. What isLiquid’s depreciation deduction?
A.$1,720
B.$3,440
C.$6,880
D.$3,640

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Ansa A residence was constructed in 1986 for 72000 on a lot that cost 14000 Before the property was converted to rental use in the current year a finished porch costing See Answer

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Machine	$ 6,400	February 1
Truck	20,000	October 15
Computer	8,000	December 1