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On March 3, 2012, Sally Purchased and Placed in Service

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Essay

On March 3, 2012, Sally purchased and placed in service a building costing $12,000,000. The building has 10 floors. The bottom three 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 Sally's cost recovery for the building in 2012.


Definitions:

Electrically Stimulated

Refers to applying electrical impulses to tissues or nerves to evoke a physiological response.

Vasocongestion

Engorgement of blood vessels with blood, which swells the genitals and breasts during sexual arousal.

Genital Tissues

Tissues that make up the reproductive organs in both males and females, involved in sexual reproduction and function.

Erection

The physiological process where the penis becomes firm and enlarged, typically as a result of sexual arousal.

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