Instructions : Choose the best multiple choice answer and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all work. All sources must be noted.

PART A

On June 2, 2016, Sal places in service a new automobile that cost $60,000. The car is used 80% for business and 20% for personal use. (Assume this percentage is maintained for the life of the car.) Sal does take additional first-year depreciation. Determine the cost recovery deduction for 2016.

a.	$8,800.
b.	$30,000.
c.	$28,800.
d.	$7,742.
e.	None of the above.

PART B

Sam purchased a hotel building on May 17, 2016, for $6,000,000, of which $1,000,000 was for land. Determine the cost recovery deduction for 2016.

a.	$128,200.
b.	$102,560.
c.	$152,400.
d.	$127,000.
e.	None of the above.