Bhaskar Purchased a New Factory Building and Land on September

question 26

Multiple Choice

Bhaskar purchased a new factory building and land on September 10,2016,for $3,700,000.($500,000 of the purchase price was allocated to the land. ) He elected the alternative depreciation system (ADS) .Determine the cost recovery deduction for 2017.

• A)$23,328
• B)$80,000
• C)$82,048
• D)$92,500
• E)None of the above

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Definitions:

Sample

A subset of individuals from within a larger population used to approximate characteristics of the whole population.

Poisson Probabilities

The likelihood of a given number of events happening in a fixed interval of time or space, assuming the events occur with a known constant mean rate and independently of the time since the last event.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space when these events occur with a known constant rate and independently of the time since the last event.

Expected Frequency

The predicted number of times an event or outcome occurs within a specific interval, based on a probability model.