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A real estate investor is considering the purchase of a four - unit office building and has the following information. The purchase price is $

A real estate investor is considering the purchase of a four-unit office building and has the following information. The purchase price is $983,593 with $8,167 in acquisition costs. Of the total cost, 76 percent is depreciable. The value of the investment is expected to increase at a rate of 4 percent per year. Selling expenses equal 6 percent of the selling price. The investors holding period is 5 years after which the property will be sold and the mortgage repaid.
What is the depreciation recovery amount? Note: the depreciation recovery amount is equal to accumulated depreciation.

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