A group of investors has formed Trump Corporation to purchase a small hotel. The asking price is

Question:

A group of investors has formed Trump Corporation to purchase a small hotel. The asking price is $150,000 for the land and $850,000 for the hotel building if the purchase takes place in June, compute the MACRS depreciation for the first three calendar years. Then assume the hotel is sold in June of the fourth year, and compute the MACRS depreciation in that year also.

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...