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Question - On May 5, 2018, Christy purchased and placed in service a hotel. The hotel cost $10,800,000, and the land cost $1,200,000 ($12,000,000 in total).
Calculate Christy's cost recovery deductions for 2018 and 2028.
If required, round your answers to the nearest dollar.
a. How is the property classified for MACRS?
b. What is the life of the asset for MACRS?
c. Christy's cost recovery deductions for 2018 is $ and for 2027 is?
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