The information presented here applies to questions 6 -- 9] You acquire a small office building for $6M. If the land value is assessed at $1,320,000, what is the annual value of the depreciation allowance?

1 points

QUESTION 7

Assuming that you have made no capital improvements to the building, what is the book value of the property after five years? Assuming that you have made no capital improvements to the building, what is the book value of the property after five years?

1 points

QUESTION 8

What is the taxable capital gain if you sell the building for $7.5M after five years?

1 points

QUESTION 9

What is the capital gains tax due if the tax on capital appreciation is 15% and the depreciation recapture tax is 25%?