Calculate the total tax saved in year 5 as a result of the d

Calculate the total tax saved in year 5 as a result of the depreciaton deduction for an office building that was purchased for $1295000 and had an estimated value for the land of 18.00% of the total purchase price. The investor\'s marginal tax rate is 40%. Note: Enter a positive number with rounded to the nearest dollar and no commas or other symbols. Example $5,765.54 should be entered as 5765 Your Answer:

CALCULATION OF DEPRECIATION

(1295000-18% OF 1295000)/5 = 212380 P.A

ANNUAL TAX SAVINGS PER YEAR

212380 * .40 = 84952

TAX SAVING FOR 5th year

84952

Calculate the total tax saved in year 5 as a result of the depreciaton deduction for an office building that was purchased for $1295000 and had an estimated va

Calculate the total tax saved in year 5 as a result of the d

Solution

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