Doug Purchased a New Factory Building on January 15, 1988

question 53

Multiple Choice

Doug purchased a new factory building on January 15, 1988, for $400,000.On March 1, 2012, the building was sold.Determine the cost recovery deduction for the year of the sale assuming he 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:

Indirect Compensation

Benefits provided to employees that are not included in direct salary, such as health insurance, retirement plans, and paid time off.

Employees' Paycheques

The periodic payments made to employees as compensation for their work, typically including details such as gross earnings, deductions, and net pay.

Internal Equity

The practice of ensuring that employees are compensated fairly in relation to one another within the same organization.

Employee Benefits and Services

Various types of non-wage compensation provided to employees in addition to their salaries or wages, such as health insurance, retirement plans, and paid time off.