Problem 14-54 (LO. 1, 2, 4)

Abby's home had a basis of $360,000 ($160,000 attributable to the land) and a fair market value of $340,000 ($155,000 attributable to the land) when she converted 70% of it to business use by opening a bed-and-breakfast. Four years after the conversion, Abby sells the home for $500,000 ($165,000 attributable to the land).

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a. Calculate Abby's basis for gain, loss, and cost recovery for the portion of her personal residence that was converted to business use.

If an amount is zero, enter "0".

	House		Land
Gain basis	$fill in the blank d21b4f0a9044fea_1		$fill in the blank d21b4f0a9044fea_2
Loss basis	$fill in the blank d21b4f0a9044fea_3		$fill in the blank d21b4f0a9044fea_4
Cost recovery basis	$fill in the blank d21b4f0a9044fea_5		$fill in the blank d21b4f0a9044fea_6

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b. Calculate the cost recovery deducted by Abby during the four-year period of business use, assuming that bed-and-breakfast is opened on January 1 of Year 1 and the house is sold on December 31 of year 4. Assume that the cost recovery percentages are 2.461% in Year 1 and 2.564% in Years 25.

Round your computations and the final answer to the nearest dollar.

The total cost recovery for the four-year period is $fill in the blank

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c. What is Abby's recognized gain or loss on the sale of the business use portion?

Abby's recognized gain on the sale of the business-use portion of the house is $fill in the blank , and her recognized gain on the business-use portion of the land is $fill in the blank .