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  3. a. you purchase a house for $150,000 that you inte

A. You purchase a house for $150,000 that you intend to rent out. For taxation...

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Accounting

A. You purchase a house for $150,000 that you intend to rent out. For taxation purposes, what is the cumulative depreciation at the end of the 8th year?
B. Assuming that your normal tax rate on your income is 25%, what is your annual tax savings by having this investment property? What is your cumulative tax savings after 8 years?
C. What will the book value be at the end of the 8th year?
Ordinary tax rate is 25%
Capital gains will be levied at a 15%
D. Real estate property will typically increase in value over time. You intend to sell the property after the 8th year and estimate that the market value will be $200,000. What will you have to pay in taxes (Ordinary & Capital gains) as a result of the sale?

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