The initial investment on a commercial building was 1m


Question: The initial investment on a commercial building was $1M excluding the land. The building was occupied in March of the year in which it was purchased. After 10 years, the property was sold in the 11th year on September 2017 for $2M. The land cost was apprised at $100,000 for tax purposes.

1. What is the depreciation for in year in which the property is disposed?

2. Determine the first depreciation of the building.

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Accounting Basics: The initial investment on a commercial building was 1m
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