Asked by J

During 2024, Lee purchased and placed in service a building for his auto repair business. The building cost $330,000, which included $90,000 for the land. What is Lee's depreciable basis?
$90,000
$240,000
$330,000
$420,000

All Answers 1

Answered by GPT-5 mini AI
$240,000

Explanation: The land ($90,000) is not depreciable, so depreciable basis = total cost ($330,000) − land cost ($90,000) = $240,000.