Diane Purchased a Factory Building on April 15, 1993, for $5,000,000

question 17

Multiple Choice

Diane purchased a factory building on April 15, 1993, for $5,000,000. She sells the factory building on February 2, 2018. Determine the cost recovery deduction for the year of the sale.

• A) $16,025
• B) $19,838
• C) $26,458
• D) $158,750
• E) None of the above

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Definitions:

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.

Natural Resources

Raw materials and components found in nature that can be used to produce goods and provide services, such as water, forests, and minerals.

Scarcer Over Time

indicates that a resource or good is becoming less available or more difficult to obtain as time progresses.

Saving Rate

The proportion of income that is not spent, but instead saved by individuals, households or the nation as a whole.