Pinal 8/16 Building cost is $s0o,000. If there is a 39 year straight line deprec
ID: 2602605 • Letter: P
Question
Pinal 8/16 Building cost is $s0o,000. If there is a 39 year straight line depreciation and the property is owned for 11 years, what is the adjusted basis of this property a. $500,000.00 b. $141,025.64 c. $358.974.36 d. $429,000.00 and Wilma Flinstone purchased a property from Barney and Betty Rubble on ember 1st This purchase agreement included the following information. Purc 182,000 with conventional financing with 3% down. Earnest mon ase price and it was provided to the salesperson on Monday August 30h lly started negotiating this contract. Personal property was not include ent, however it did indicate in the seller's disclosure and the listing ap es were going with the sale. The seller's disclosure also indicated tion for radon gas and the property was close to farm and farm o ey wasa came in at $178,000. The offer was accepted by all parties on Rased on this information, answer the following 5 quesExplanation / Answer
ans) option (C) $358,974.36
Depreciation = 500,000 / 39 = 12820.51
Depreciation for 11 years = 12820.51 X 11 = 141025.64
Adjusted basis of this property = 500,000 - 141025.64 = 358974.36