Question 1) Janice acquired an apartment building on June 4, 2010, for $1.4 million. The value of the land is $200,000. Janice sold the apartment building on Nov. 29, 2016.
a) Determine Janice's cost recovery for 2010.
b) Determine Janice's cost recovery for 2016.
Question 2) On Oct. 15, 2010, Jan purchased and placed in service a new car. The puchase price was $25,000. This was the only business use asset Jon acquired in 2010. He used the car 80% of the time for business and 20% for personal use. Jon used the statutory percentage method of cost recovery. If congress reenacts additional first-year depreciation for 2010, he elects not to take additional first-year depreciation.
Calculate the total deduction Jon may take for 2010 with respect to the car.