Steve Corp Bought a $925,000 Apartment Building in 2012

question 44

Multiple Choice

Steve Corp bought a $925,000 apartment building in 2012.Of the purchase price,$100,000 is allocated to the value of the land.What is the maximum amount of depreciation that the company can claim in 2013 year 2) for the building?

• A)$29,997
• B)$825,000 under the election to expense business property
• C)$250,000 under the election to expense business property
• D)$82,500
• E)You cannot depreciate property costing over $800,000

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Definitions:

Seal

A formal mode of expressing the intention to be bound by a written promise or agreement. This expression usually takes the form of signing or affixing a wax or gummed paper wafer beside the signature, or making an engraved impression on the document itself.

Privity of Estate

A legal concept that refers to the relationship between parties whose interests in a piece of property are intertwined.

Privity of Contract

A principle stating that only parties to a contract have the right to sue or be sued under the terms of the contract.

Privity of Reversion

A legal concept relating to the rights of individuals who have a future interest in property currently possessed by another.