Answered

Cora purchased a hotel building on May 17, 2020, for $3,000,000. Determine the cost recovery deduction for 2021. a.$76,920 b.$69,000 c.$48,150 d.$59,520

Answer :

Answer: $76920

Explanation:

Firstly, we should note that the hotel building is simply non residential and then qualifies to be part of 39 year property.

Then, the cost of recovery will be:

= 1/39 × Cost of the hotel

= 1/39 × $3,000,000

= $76,920

Therefore, the cost recovery deduction for 2021 is $76,920

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