Diane purchased a factory building on April 15, 1993, for $5,000,000 . She sells the factory building on February 2, 2017 . Determine the cost recovery deduction for the year of the sale
a. $16,025
b. $19,838
c. $26,458
d. $158,750
e. None of the above
b
RATIONALE: .03174 × $5,000,000 × 1.5/12 = $19,838 . Non-residential real estate placed in service before May 3, 1993 (31.5-year life).
Business
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