Amber Is in the Process This Year of Renovating the Office

question 40

Multiple Choice

Amber is in the process this year of renovating the office building (originally placed in service in 1976) used by her business.Because of current Federal Regulations that require the structure to be accessible to handicapped individuals, she incurs an additional $11,000 for various features, such as ramps and widened doorways, to make her office building more accessible.The $11,000 incurred will produce a disabled access credit of what amount?

• A)$0.
• B)$5,000.
• C)$5,125.
• D)$5,500.
• E)None of the above.

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Definitions:

Decrease in Assets

A reduction in the value or quantity of the assets held by a company.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a portion of its profits or losses.

Revenue

The overall income that a corporation gathers from the sales of merchandise or offering of services throughout a designated period.

Prepaid Insurance

An asset account that represents insurance payments made in advance of the coverage period, to be expensed as the insurance coverage is used up.