Western Bank & Trust_Depreciation and Tax Advantages

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Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. 
To get the maximum tax deduction, Western allocated 90% of the purchase price to the building and only 10% to the land. A more realistic allocation would have been 70% to the building and 30% to the land.
The average useful life for commercial buildings is 25 years.    
What is the depreciation expense for the 90%/10% allocation?    
What is the depreciation expense for the 70%/30% allocation?    
Why would Western view this action as a tax advantage?   
    • 9 years ago
    Western Bank & Trust_Depreciation and Tax Advantages
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      western_bank__trust_depreciation_and_tax_advantages.xlsx