Choice "C" is correct. Only the building is depreciable, so the depreciable portion is $264,000 less $30,000 land, for a net of $234,000. The MACRS rules provide a 39-year life, straight-line depreciation, and a "mid-month" acquisition convention that treats the property as acquired in the middle of the month, regardless of the actual date of acquisition. Therefore, the August 1, Year 1, service date provides a half-month's depreciation for August, plus a full month for September through December, for a total of 4.5 months for Year 1. ($234,000/39 years) × (4.5/12)=$2,250.Choice "d" is incorrect. The recovery period for nonresidential real property is 39 years and the mid-month convention is used. The building is treated as if acquired in the middle of the month, regardless of the actual date of acquisition. Depreciation may only be taken for the months after the building was placed in service.Choice "a" is incorrect. The mid-month convention is used for real property. The building is treated as if acquired in the middle of the month, regardless of the actual date of acquisition. Depreciation may only be taken for the months after the building was placed in service.Choice "b" is incorrect. The recovery period for nonresidential real property is 39 years.