Problem 5-37 (LO. 7) On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10,800,000, and the land cost $1,200,000 ($12,000,000 In total). Calculate Christy's cost recovery deductions for 2021 and 2031. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. How is the property classified for MACRS? Nonresidential real estate b. What is the life of the asset for MACRS? 39 years c. Calculate Christy's cost recovery deductions for 2021 and 2031. 2021: $ 2031: S Check My Work Both realty and personalty can be either business use/income producing property or personal use property. Assets used in a trade or business or for the production of income are eligible for cost recovery if they are subject to wear and tear, decay or decline from natural causes, or obsolescence. Under MACRS, the cost of most real property is recovered using the straight-line method. Feedback