Calculate stellas cost recovery deduction, Cost Accounting

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Calculate stellas cost recovery deduction

Problem

i. On October 3, 2022, Stella purchased an office building for $2,200,000. The land was valued at $500,000. On July 5, 2026 Stella sold the office building.

ii. Calculate Stella's cost recovery deduction for 2022.

iii. Calculate Stella's cost recovery deduction for 2026.

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Cost Accounting: Calculate stellas cost recovery deduction

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Cost Accounting: Calculate stellas cost recovery deduction

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