Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 30

Janet purchased her personal residence in 2001 for $250,000. In January 2010 she converted it to rental property. The fair market value at the time of conversion was $210,000.
a. Determine the amount of cost recovery that can be taken in 2010:_________________
b. Determine the amount of cost recovery that could be taken in 2010 if the fair market value of the property were $350,000:_____________________