As an investment, a property is purchased at price of $1,100,000 with acquisition costs of $18,500, and 80% of the total cost is depreciable. The property is expected to appreciate in value at 10% per year. The holding period will be three years, and the selling expenses will be 10% of the selling price. Please calculate: a. The depreciation recovery (DP) b. The amount of capital gain (CG

Please use residential depreciation method, where deprerciation for the first and last year is 11.5/12 months.