What is the maximum federal cost recovery deduction

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Question - Johnson Corporation, a calendar-year taxpayer, purchased land and an office building on September 30, 2014 for $2,500,000. The building was allocated $2,100,000 and the land was allocated $400,000 of the purchase price. Johnson Corporation immediately began using the land and the office building in its business operations. What is the maximum federal cost recovery deduction Johnson Corporation can claim on the land and office building purchased in 2014?

a. $500,000.

b. $412,733.

c. $22,281.

c. $18,725.

e. $15,729.

Reference no: EM132058933

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