Indie Corporation Purchases a Building for Use in Its Business

question 16

Multiple Choice

Indie Corporation purchases a building for use in its business at a cost of $100,000.The building was built in 1900 and is a certified historic structure.Indie spends $150,000 on qualifying renovations certified as consistent with the buildings character.Indie will earn a rehabilitation (historic) tax credit of

• A)$15,000.
• B)$30,000.
• C)$25,000.
• D)$50,000.

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Definitions:

Human Capital Theory

A concept in economics that emphasizes the importance of human factors, such as skills and knowledge, in contributing to economic productivity.

Financial Returns

The financial gains or profits derived from an investment or business activity, expressed as a percentage of the investment's original cost.

Productivity-Based Returns

Financial returns or outcomes that are directly linked to the productivity or efficiency improvements within an organization or process.

Forecast Human Capital

The process of predicting the future needs for and supply of workers, based on business and economic trends.