Q. On August 10,2017, Sophia purchased and placed into service a commercial building (39 years...

80.2K

Verified Solution

Question

Accounting

Q. On August 10,2017, Sophia purchased and placed into service a commercial building (39 years
SL) for $3.000,000(building $2,250,000 and land $750,000). On January 1,2022, the commercial
building was contributed to the newly formed partnership S&L Commercial Properties Ltd. At the
time of the contribution the building and land were valued at $4,500,000(building $3,500,000
and land $1,000,000).
The initial tax annual tax depreciation equals $57,692=$2,250,00039 years. As of December 31,
2021, the adjusted tax basis of the building was $1,997,597.
There are 415.5 months remaining the the class life for this commercial building.
Calculate the annual book depreciation using the traditional method found in Regulation $1.704-
3(b) for 2022.
Pick a answer.
$101,083
$89,744
$86,004
$57,692
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students