Question

Cora purchased a hotel building on May 17, 2019, for $3,000,000. Determine the cost recovery deduction...

Cora purchased a hotel building on May 17, 2019, for $3,000,000. Determine the cost recovery deduction for 2020 if sold hotel on November 3, 2020.

Select one:

A. $48,150

B. $67,305

C. $69,000

D. $76,920

E. None of these.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Your required answer is option D i.e. $76,920.

Explanation:

Since Hotel building is a Non-residential Property therefore 2.564% will be depreciated.

Cost Recovery Deduction = $3,000,000 X .02564

Cost Recovery Deduction = $76,920

Note: On Nonresidential real property recovery period is applicable for 39 year

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
James purchased a new business asset (three-year personalty) on July 23, 2020, at a cost of...
James purchased a new business asset (three-year personalty) on July 23, 2020, at a cost of $40,000. James takes additional first-year depreciation but does not elect § 179 expense on the asset. Determine the cost recovery deduction for 2020. a.$26,666 b.$8,333 c.$33,333 d.$40,000 Cora purchased a hotel building on May 17, 2020, for $3,000,000. Determine the cost recovery deduction for 2021. a.$69,000 b.$59,520 c.$76,920 d.$48,150
Jake purchased a new apartment building on March 20, 2019, for $3,000,000 (including $700,000 for the...
Jake purchased a new apartment building on March 20, 2019, for $3,000,000 (including $700,000 for the land). On December 20, 2020, the building was sold. Determine the depreciation deduction for 2020.
2019 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2019, Holly purchased a...
2019 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Please access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. $ ________ Feedback MACRS allows taxpayers who invest in capital assets to write off...
On July 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the...
On July 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $243,700. Holly also owns another residential apartment building that she purchased on July 15, 2019, with a cost basis of $420,000. If required, round intermediate calculations and final answers to nearest dollar. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
Phillis Wheatley purchased a drill press (three-year personalty) on May 25, 2019, at a cost of...
Phillis Wheatley purchased a drill press (three-year personalty) on May 25, 2019, at a cost of $2,560,000. Phillis Wheatley does not take first-year depreciation but does take Section 179 expense. Determine the cost recovery deduction for 2019
On December 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the...
On December 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $186,600. Holly also owns another residential apartment building that she purchased on August 15, 2019, with a cost basis of $145,500. Click here to access the depreciation tables. If required, round intermediate calculations and final answers to nearest dollar. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. $ b. Calculate Holly's total depreciation deduction for the apartments...
Aaron Rodgers purchased an apartment building on August 1, 2019, for a total of $1.75 million...
Aaron Rodgers purchased an apartment building on August 1, 2019, for a total of $1.75 million of which $525,000 was the value of the land on which the apartment building was located. Also, Aaron purchased 5-year class new business equipment for $32,750 on October 11, 2019. He elects not to immediately expense the equipment under §179 and elects not to take the additional first-year depreciation. Aaron purchased no other business assets during 2019. Determine Aaron’s depreciation on the apartment building...
On December 15 of year 1 Javier purchased a building, including the land it was on,...
On December 15 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,432,000; $317,000 was allocated to the basis of the land and the remaining $1,115,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) b. What would...
75-76. Polly purchased a new factory building in April, 5 years ago for $5,000,000. On March...
75-76. Polly purchased a new factory building in April, 5 years ago for $5,000,000. On March 3, this year, the building was sold. 75.     To calculate the cost recovery in the year of disposition, the percentage from the table must be multiplied by: a. a.       2 b. b.       1 c. c.       2.5 over 12 d. d.       3.5 over 12 76. The allowable cost recovery in the year of disposition is: a. a.       $26,708 b. b.       $33,073 c. c.       $66,146 d. d.       $396,876 e. e.       None of the above e.       None...
Bonnie purchased a new business asset (five-year property) on March 10, 2018, at a cost of...
Bonnie purchased a new business asset (five-year property) on March 10, 2018, at a cost of $30,000. She also purchased a new business asset (seven-year property) on November 20, 2018, at a cost of $13,000. Bonnie did not elect to expense either of the assets under § 179, nor did she elect straight-line cost recovery. Bonnie takes additional first-year depreciation. Determine the cost recovery deduction for 2018 for these assets. a. $7,858 b. $9,586 c. $21,915 d. $43,000 e. None...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT