Problem $8-6($Algorithmic$)$

Modified Accelerated Cost Recovery System $($MACRS$)$ and Bonus Depreciation $($LO $8\mathrm{.}2)$ a cost basis of $\backslash (\backslash$$ $570,000\backslash ).$

Click here to access the depreciation tables.

If required, round intermediate calculations and final answers to nearest dollar.

a$.$ Calculate Holly's total depreciation deduction for the apartments for $2023$ using MACRS and assuming she does not elect out of bonus depreciation.

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The minimum number of years over which the cost of an asset may be deducted $($the recovery period$)$ depends on the type of the property and the year in which the property was acquired.

The calculation of depreciation expense for tax purposes involves certain conventions and limitations$.$ cost of the property to which the rate is applied is not reduced for prior years' depreciation.

Note: There are different tables for residential realty $($e$.$g$.,$ an apartment building$)$ and nonresidential realty.

b$.$ Calculate Holly's total depreciation deduction for the apartments for $2024$ using MACRS.

$\backslash (\backslash$$ $28,069\mathrm{.}9\backslash$times $\backslash )$