On november 30, 2019, constance purchased an apartment building for $750,000 (assume this is the depreciable cost excluding any land valuation). determine her cost recovery deduction for 2019 rounded to the nearest dollar.

$3,412.5

Explanation:

Since the property is purchased by Constance in the month of November, therefore it was not in service for the whole year of 2019 and accordingly the cost deduction rate for the month of november which is 0.455% shall be used for the purpose of calculating Constance cost recovery deduction for the year ended 2019.

Cost recovery deduction for 2019=Purchased amount*0.455%

                                                      =$750,000*0.455%=$3,412.5

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