Prepare a spreadsheet to calculate the depreciation for residential (27.5-year recovery period) and commercial (39-year recovery period) real estate using the straight-line depreciation method. The spreadsheet should allow the user to select the month that the real estate is placed in service, with January being the first month. Use the percentages in Table 5-5 to determine the first year’s depreciation. Test your spreadsheet by entering the data from Example 5-6 and Problems 13 and 14.

TABLE 5-5 Depreciation Percentages for the Midmonth Convention

Compare your spreadsheet’s solution to the answer to theseproblems.

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MONTH 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11 th 12th PLACED IN SERVICE 0.9583 0.8750 0.7917 0.7083 0.6250 0.5417 0.4583 0.3750 0.2917 0.2083 0.1250 0.0417 DISPOSED OF 0.0417 0.1250 0.2083 0.2917 0.3750 0.4583 0.5417 0.6250 0.7083 0.7917 0.8750 0.9583