On September 3, 2015, Ivory Company acquired an apartment building for $1,500,000 (with $300,000 being...
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On September 3, 2015, Ivory Company acquired an apartment building for $1,500,000 (with $300,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on September 30, 2018, for $1,400,000.
Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property.
If an amount is zero, enter "0". Round the total cost recovery deduction to the nearest dollar.
a. The cost recovery is $________, and the adjusted basis for the building is $________.
b. There is $______ of recognized (gain/loss) on the sale of the property. How much, if any, is subject to 1250 recapture? $_________
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