WR&Z Company, a Calendar Year Taxpayer, Paid $6,400,000 for a Commercial

Multiple Choice

WR&Z Company, a calendar year taxpayer, paid $6,400,000 for a commercial office building and allocated $400,000 of the cost to the land and $6,000,000 of the cost to the building. WR&Z place the realty in service on May 11. Refer to the appropriate MACRS Table in Chapter 7 to compute WR&Z's first-year depreciation on the realty. Use Table 7-4.

A) $136,380
B) $102,720
C) $96,300
D) None of these choices are correct