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Unformatted text preview: ealty must be 27.5 years. CPA-02195
Choice "b" is correct. Under the MACRS method of depreciation for property placed in service after 1986,
salvage value is ignored for purposes of computing the deduction.
Choice "a" is incorrect. The MACRS method applies to the calculation of the cost recovery deduction for
used tangible depreciable property.
Choice "c" is incorrect. The taxpayer may elect to use straight-line depreciation over the MACRS
property class life or an extended life as dictated by the ADR system.
Choice "d" is incorrect. The recovery period for the depreciable realty must be 27.5 years for residential
realty and 39 years for commercial realty. CPA-02197 Type1 M/C 97. CPA-02197 May 91 II #52 A-D Corr Ans: A PM#3 R 3-99 Page 26 With regard to depreciation computations made under the general MACRS method, the half-year
convention provides that: 47
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- Fall '10
- The Land