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On March 6, 2016, Cloe Company acquired an office building for $9,700,000 (with $700,000 being allocated to the land). The straight-line cost recovery method was

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On March 6, 2016, Cloe Company acquired an office building for $9,700,000 (with $700,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on June 22, 2020, for $8,700,000. Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property If an amount is zero, enter"0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearest dollar. a. Compute the cost recovery and adjusted basis for the building. The cost recovery is and the adjusted basis for the buildings b. What are the amount and nature of Cloe's gain or loss from disposition of the property? What amount of any of the gain is unrecaptured $ 1250 gain? There is of recognized loss on the sale of the property, of which s is subject to $ 1250 recapture For Property Placed in Service after December 31, 1986:27.5-Year Residential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service) Years 1 2 4 5 6 7 8 9 10 11 12 1 3.485 3.182 2.879 2.576 2.273 1970 1667 1.364 1.061 0.758 0.455 0.152 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.6.36 19-27 3./637 3637 3637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3637 34637 28 1.970 2273 2.576 2.879 3.182 3485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.354 1.667 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service Yearts) 2 5 6 7 8 10 11 12 1 3042 2.778 2.513 2.249 1.984 1.720 1.455 0.926 0.661 0.397 0.132 2-19 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 2.175 3.175 2175 20-31 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 2174 3.174 3.174 3.174 32 1.720 1.984 2.249 2.513 2.778 3042 3.175 3.175 3.175 3.175 2.175 3.175 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.397 0.661 0.926 1.190 1.455 For Property Placed in Service after May 12, 1993:39-Year Nonresidential Real Property Recovery The Applicable Percentage is (Use the Column for the Month in the First Year the Property is placed in Service Your 1 2 3 5 7 8 9 10 11 12 1 2461 2242 2.033 1.819 1.005 1.391 1.177 0.963 0749 0.535 0121 0.107 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2564 2.564 40 0.100 0.321 0.535 0749 0.963 1.177 1.391 1605 1.319 2033 2.247 2.461

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