Astrid's annual depreciation expense for her rental house valued at $150,000 is calculated to be what under GDS?

To determine Astrid's annual depreciation expense for her rental house valued at $150,000 under the General Depreciation System (GDS), the Modified Accelerated Cost Recovery System (MACRS) is typically used. For residential rental properties, GDS generally uses a straight-line method over a recovery period of 27.5 years.

In order to calculate the annual depreciation expense, you would first divide the value of the property by the recovery period:

1. Value of the property: $150,000

2. Recovery period for residential rental property under GDS: 27.5 years

Calculating the annual depreciation:

Annual Depreciation Expense = Value of the Property / Recovery Period

Annual Depreciation Expense = $150,000 / 27.5

Annual Depreciation Expense ≈ $5,454.55

It appears there may be a discrepancy in the annual depreciation figure compared to the provided choices, as it approximates closely to $5,454.55, which isn't listed among the options. However, if additional considerations such as bonuses or shorter depreciation schedules under specific tax regulations apply, it could adjust the resulting figure.

In this context, if we consider the closest option presented, choosing the figure of