Reference no: EM132719942

Burch Corporation uses the calendar year as its tax year. It purchases and places into service $1.5 million of the property during 2020 to use in its business.

                                             Placed into service               Cost              Recovery Period

Apartment building               1-May                         $420,000           27.5 years
Office furniture                  23-Jun                       $690,000        7 years
Office machinery              15-Oct                      $390,000              5 years

• $110,000 of the cost pertains to the land on which the apartment building is located.

Problem a. What is Burch's total depreciation deduction for 2020 if Burch elects out of bonus depreciation and does not claim Sec. 179 expensing? (Use MACRS rates to three decimal places, X.XXX%. Round the MACRS depreciation to the nearest dollar.)