On March 3, 2018, Matt purchased and placed in service a building costing $12,000,000. The building has 10 floors. The bottom floors are rented out to businesses. The top seven floors are residential apartments. The gross rents from the businesses are $60,000 and the gross rents from the apartments are $110,000. Determine Matt’s cost recovery for the building in 2018.

a. $315,024

b. $436,320

c. $345,480

d. $243,960

e. $307,680

Answer rating: 100% (QA)

315024 The gross rents from the apartments are not 80 ... View the full answer