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

Question

Quizplus · Accepted Answer

The hotel building is nonresidential real property, which is depreciated over 39 years using the straight-line method. The cost recovery deduction for 2019 is calculated as $3,000,000 / 39 = $76,920.

Cora Purchased a Hotel Building on May 17, 2018, for $3,000,000