Turtle Corporation is a calendar year C Corporation formed in 2017. Turtle purchased a motel property in June 2020 for $11,000,000. The motel land value represented $2,500,000 of the $11,000,000 purchase price. What is the allowable depreciation deductions on the hotel for 2020 and 2021? A. $118,235 in 2020 and $217,940 in 2021 B. $153,010 in 2020 and $282,040 in 2021 C. $167,450 in 2020 and $309.060 in 2021 D. $309,060 in 2020 and $167,450 in 2021

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 60P
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Turtle Corporation is a calendar year C
Corporation formed in 2017. Turtle purchased
a motel property in June 2020 for
$11,000,000. The motel land value
represented $2,500,000 of the $11,000,000
purchase price. What is the allowable
depreciation deductions on the hotel for 2020
and 2021?
A. $118,235 in 2020 and $217,940 in 2021
B. $153,010 in 2020 and $282,040 in 2021
C. $167,450 in 2020 and $309.060 in 2021
D. $309,060 in 2020 and $167,450 in 2021
Transcribed Image Text:Turtle Corporation is a calendar year C Corporation formed in 2017. Turtle purchased a motel property in June 2020 for $11,000,000. The motel land value represented $2,500,000 of the $11,000,000 purchase price. What is the allowable depreciation deductions on the hotel for 2020 and 2021? A. $118,235 in 2020 and $217,940 in 2021 B. $153,010 in 2020 and $282,040 in 2021 C. $167,450 in 2020 and $309.060 in 2021 D. $309,060 in 2020 and $167,450 in 2021
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