Bhaskar Purchased a New Factory Building on September 2, 2012

question 79

Multiple Choice

Bhaskar purchased a new factory building on September 2, 2012, for $2,000,000.He elected the alternative depreciation system (ADS) .Determine the cost recovery deduction for 2013.

• A)$15,000.
• B)$18,000.
• C)$22,000.
• D)$50,000.
• E)None of the above.

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Definitions:

Subsidiary

A firm overseen by another entity, commonly known as the parent company, which holds over 50% of its voting shares.

Non-controlling Interest

The equity in a subsidiary not attributable directly or indirectly to the parent company, representing the share of equity interests held by other investors.

Accounting Rules

Formal guidelines and procedures that govern the recording, reporting, and analysis of financial transactions and positions.

Liabilities

Financial obligations or debts owed by a company to third parties, which must be settled through the transfer of assets, provision of services, or other economic benefits.