Purchased a building for $570,000. You got a mortgage of $440,000 at 7% with monthly payments based on 30 year amoritization. Loan term is 14. The bank charges 2 points. What is the first year's interest deduction?

Then,You purchase a camp for $550,000 on May 15 so you can use and rent to customers. The land its on is worth 29% of the purchase price. You build a pavilion right away for $22,000. You hold the property for 5 years and sell it for $730,000. What is your accumulated depreciation over the 5-year holding period?

The answers are provided. Show the work / calaculations used to come up with BOTH of the highlighted answers.

1st Year Interest Deduction Purchase Price Mortgage Price-Mort Mort. Rate % Mort. Rate $ Amort. Pd $ 570,000 $ 440,000 $130,000 7% or monthly $30,800 or monthly 30 years 360 months or Points Charged or 0.02 Loan Term 14 years Deduction $30,658.41 Accum. Depreciation over holding period Purchase Price Land worth % Land Worth $ Price-Land Improvement Price-Land+lmprov. 412,500 Holding Pod $550,000 29.00% $ 159,500 $390,500 S22,000 S years 60 months or New Selling Price 730,000 Accum. Depr S 74,841