Homework answers / question archive / As an investment, a property is purchased at price of $1,100,000 with acquisition costs of $18,500, and 80% of the total cost is depreciable

As an investment, a property is purchased at price of $1,100,000 with acquisition costs of $18,500, and 80% of the total cost is depreciable

Finance

Share With

As an investment, a property is purchased at price of $1,100,000 with acquisition costs of $18,500, and 80% of the total cost is depreciable. The property is expected to appreciate in value at 10% per year. The holding period will be three years, and the selling expenses will be 10% of the selling price. Please calculate: a. The depreciation recovery (DP) b. The amount of capital gain (CG