Modified Accelerated Cost Recovery System (MACRS) (LO 8.2)
On June 8, 2021, Holly purchased a residential apartment building. The cost basis assigned to the building is $650,000. Holly also owns another residential apartment building that she purchased on October 15, 2021, with a cost basis of $400,000.
Round your answers to the nearest dollar.
a. Calculate Holly's total depreciation deduction for the apartments for 2021 using MACRS.
$__________
b. Calculate Holly's total depreciation deduction for the apartments for 2022 using MACRS.
$__________