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On April 3, 2017, Terry purchased and placed in service a building that cost $2,000,000. An...

On April 3, 2017, Terry purchased and placed in service a building that cost $2,000,000. An appraisal determined that 25% of the total cost was attributed to the value of the land. The bottom floor of the building is leased to a retail business for $32,000. The other floors of the building are rental apartments with an annual rent of $160,000.

If required, round your answers to the nearest dollar.

a. How is the property classified for MACRS?

-non-residential real estate

-residential real estate

b. What is the life of the asset for MACRS?

c. Terry's cost recovery deduction for 2017 is

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