Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as residential rental real estate. _______ b. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as nonresidential real estate._______
Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as residential rental real estate. _______ b. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as nonresidential real estate._______
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the
If required, round your answers to the nearest dollar.
a. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as residential rental real estate. _______
b. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as nonresidential real estate._______
Expert Solution
Step 1
The rate of depreciation will be 3.636% on the total value of the asset on the straight-line method.
The rate of MACRS applicable will be 2.564% on the total value on a non-residential basis
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