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On November 4,2020 , Bque Compary acquired an asset (27,5-year residentwal real property) for $200,000 for use in its businesh. In 2020 . and 2021,

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On November 4,2020 , Bque Compary acquired an asset (27,5-year residentwal real property) for $200,000 for use in its businesh. In 2020 . and 2021, respectively, Blue deducted 5642 and 55,128 of cost recovery. These amounts were incorrect; Blue applied the wrong percentages (h.ei, those for 39 -year rather than 27.5 -year assets). Blue should have token 5910 and $7.272 cost recovery in 2020 and 2021, respectively. On banuary 1,2022 , the asset was sold for $180,000. If required, round all computations to the nearest dollar. Click here to access the depreciation tables in the texthook. a. The adjusted basis of the asset at the end of 2021 is 4 x b. The cost recovery deduction for 2022 is 1 x C. The on the sale of the asset in 2022 is 4 x

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