Dale Owns and Operates Dale's Emporium as a Sole Proprietorship

question 57

Multiple Choice

Dale owns and operates Dale's Emporium as a sole proprietorship.On January 30,1998,Dale's Emporium acquired a warehouse for $100,000.For regular income tax purposes in 2015,depreciation was deducted under MACRS using a rate of 2.564%.Determine the AMT adjustment for depreciation and indicate whether it is positive or negative.

• A)$64 negative adjustment.
• B)$64 positive adjustment.
• C)No adjustment is required because Dale's Emporium used the Alternative Depreciation System (ADS) to compute depreciation on the property for AMT purposes.
• D)No adjustment is required because Dale's Emporium used MACRS to compute the depreciation of the property for regular income tax purposes.
• E)None of the above.

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Definitions:

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within an organization, focusing on product creation, development, and distribution.

Productive Systems

Systems designed to enhance efficiency and productivity in the production of goods or delivery of services.

Finished Products

Refer to goods that have completed all stages of production and are ready for sale or distribution to the end-user.

Production Efficiencies

The optimization of processes, resources, and equipment to maximize output while minimizing waste and costs in manufacturing.