A commercial property which cost $33,488,000 is considered to have 45% of its total value attributable to land. Plant and equipment represents 8% of cost. The building depreciation allowance is 2.5% and the investor's marginal tax rate is 46.5%. What is the reduction in tax liability (depreciation tax shield) attributable to the building allowance for this property?

Answer rating: 100% (QA)

The portion of the propertys value attributable to the land is 3... View the full answer