Mike brady ourchased an apartment building on april 122016, Ask an Expert

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Mike Brady ourchased an apartment building on April 12,2016, for a total pf $3 million of which $800,000 was the value of the land on which the apartment building was located. Also, Mike purchased 7-year class new business equipment for $40,000 on May 11,2016. He elects not to immediately epxense the equipment under 179 and elects not to take the additional first year depreciation. Mike purchased no other business assets during 2016.

a. Determine Mike's depreciation on the apartment building for 2016.

b. Determine Mike's depreciation on the equipment for 2016.

c. If Mike sells the apartment building on August 29,2019, how much depreciation deduction will Mike take for the apartment building for 2019?

d. If Mike sells the equipment on August 29,2019, how much depreciation deduction will Mike take for the equipment for 2019?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92044918

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