Question 1

Lopez acquired a building on June 1, 2015, for $31,779,200. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential.

Click here to access the depreciation table to use for this problem.

If required, round your answers to the nearest dollar.

a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate. $

b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as nonresidential real estate. $

Qustion 2

Exercise 8-22 (Algorithmic) (LO. 2)

Andre acquired a computer on March 3, 2020, for $25,400. He elects the straight-line method for cost recovery. Andre does not elect immediate expensing under 179. He does not claim any available additional first-year depreciation.

Click here to access the depreciation table to use for this problem.

Calculate Andre's cost recovery deduction for the computer for tax years 2020 and 2021. 2020: $ 2021: $