Tom Tom LLC Purchased a Rental House and Land During

Multiple Choice

Tom Tom LLC purchased a rental house and land during the current year for $150,000. The purchase price was allocated as follows: $100,000 to the building and $50,000 to the land. The property was placed in service on May 22. Calculate Tom Tom's maximum depreciation for this first year. (Use MACRS Table 3.)

A) $1,605
B) $2,273
C) $2,408
D) $3,410
E) None of the choices are correct.