Simmons LLC Purchased an Office Building and Land Several Years

Multiple Choice

Simmons LLC purchased an office building and land several years ago for $250,000. The purchase price was allocated as follows: $200,000 to the building and $50,000 to the land. The property was placed in service on October 2. If the property is disposed of on February 27 during the 10^th year, calculate Simmons' maximum depreciation in the 10^th year:

A) $641
B) $909
C) $5,128
D) $7,346
E) None of these