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Cora purchased a hotel building on May 17,.2018, for $3,000,000. Determine the cost recovery deduction for 2019.

a. $48,150
b. $59,520
c. $69,000
d. $76,920
e. None of the above

User Sturdytree
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1 Answer

3 votes

Answer:

d. $76,920

Step-by-step explanation:

Calculation to Determine the cost recovery deduction for 2019

Based on the information given we were told that they purchased a hotel building on May 2018 for the amount of $3,000,000 which means that to calculate the cost recovery deduction for 2019 we would be using 2.563 to multiply the cost of purchasing the hotel reason been that hotel building is a non residential property.

Hence,

Cost recovery deduction=2.563* $3,000,000

Cost recovery deduction=$76,920

Therefore the Cost recovery deduction will be $76,920

User Andrew Bucknell
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