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Motel buildings have a cost recovery period of 27.5 years.
a. True
b. False

1 Answer

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Final answer:

The statement is false. Residential rental properties have a cost recovery period of 27.5 years, while non-residential properties like motels have a cost recovery period of 39 years.

Step-by-step explanation:

The statement that motel buildings have a cost recovery period of 27.5 years is false. Residential rental property, like apartment buildings, has a cost recovery period of 27.5 years under the Modified Accelerated Cost Recovery System (MACRS).

However, non-residential real property, which includes motels and hotels, generally has a longer cost recovery period of 39 years.

The statement is false. Residential rental properties have a cost recovery period of 27.5 years, while non-residential properties like motels have a cost recovery period of 39 years.

The statement that motel buildings have a cost recovery period of 27.5 years is false. Residential rental property, like apartment buildings, has a cost recovery period of 27.5 years under the Modified Accelerated Cost Recovery System (MACRS).

However, non-residential real property, which includes motels and hotels, generally has a longer cost recovery period of 39 years.

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