Simpson Company, a Calendar Year Taxpayer, Acquires an Apartment Building

question 108

Multiple Choice

Simpson Company, a calendar year taxpayer, acquires an apartment building on March 22, 2018 for $900,000. What is the maximum cost recovery deduction it may take for 2018?

• A) $18,297.
• B) $22,617.
• C) $25,911.
• D) $31,365.

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Definitions:

Equilibrium

A state of balance in a market, where demand equals supply, and economic forces are at rest.

Welfare Economics

Normative evaluation of markets and economic policy.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Efficient

Refers to a level of performance that uses the least amount of inputs to achieve the highest amount of output.