2 problem

1.Red Company purchased an apartment building on November 1, 2014, for $7,000,000. Determine the cost recovery deduction for 2014.

2.Pink Corporation purchased a business asset (seven-year property) on October 18, 2014, at a cost of $30,000. This is the only asset it purchased during the year. Pink did not elect to expense any of the asset under 179, nor did it elect to take additional or bonus depreciation or use straight-line cost recovery. Determine the cost recovery deduction for 2014.

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4.On June 4, 2013, Sam purchased an automobile (5 year property) that cost $30,000. The car is used 70% for business and 30% for personal use. Determine the cost recovery for 2014 and 2013 assuming the business use remains the same.

On May 12, 2013, Kate purchased an automobile (5 year property) that cost $40,000.She used the automobile 40% for business and 60% for personal use during 2013. Determine the cost recovery for 2014 and 2013 assuming the business use percentage remains the same.