Problem $8-6($Algorithmic$)$

Modified Accelerated Cost Recovery System $($MACRS$)$ and Bonus Depreciation $($LO $8\mathrm{.}2)$

On February $8,2023,$ Holly purchased a residential apartment building. The cost basis assigned to the building is $$209,000.$ Holly also owns another reside apartment building that she purchased on January $15,2023,$ with a cost basis of $$633,000.$

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