Question - Paul Kline purchased an apartment building on March 12, 2017, for a total of $3 million of which $750,000 was the value of the land on which the apartment building was located.
Also, Paul purchased 7-year class new business equipment for $40,000 on November 11, 2017. He elects not to immediately expense the equipment under §179 and elects not to take the additional first-year depreciation.
Paul purchased no other business assets during 2017.
SHOW WORK PLEASE!!
1. Determine Paul's depreciation on the apartment building for 2017.
2. Determine Paul's depreciation on the equipment for 2017.
3. If Paul sells the apartment building on April 29, 2020, how much depreciation deduction will Paul take for the apartment building for 2020?
4. If Paul sells the equipment on December 20, 2018, how much depreciation deduction will Paul take for the equipment for 2018?