Doug Purchased a New Factory Building on January 15,1990,for $400,000

question 49

Multiple Choice

Doug purchased a new factory building on January 15,1990,for $400,000.On March 1,2016,the building was sold.Determine the cost recovery deduction for the year of the sale;Doug did not use the MACRS straight-line method.

• A)$0
• B)$1,587
• C)$2,645
• D)$12,696
• E)None of the above

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates higher than market volatility.

Market Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of investing in the stock market.

Risk-free Rate

The return on an investment with no risk of financial loss, often associated with government bonds.

Required Return

The minimum expected yield by investors for providing capital to a company or project.