Dunn Company Bought an Old Building in Downtown Lafayette for $75,000.The

question 7

Multiple Choice

Dunn Company bought an old building in downtown Lafayette for $75,000.The land was not purchased;it is being leased.The building was originally placed into service in 1918.Dunn spends $100,000 to rehabilitate the building with the intent to develop a microbrewery on the site.The company retained 80% of the external and internal walls and framework.Assume the amount of the older building rehabilitation credit Dunn can claim is $10,000.What is the basis in the building for depreciation purposes?

• A)$100,000
• B)$145,000
• C)$105,000
• D)$165,000
• E)$175,000

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Definitions:

Ending Inventory

The total value of a company's merchandise or goods that have not been sold at the end of an accounting period.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, prior to any purchases or sales.

Next Period

A future accounting period where transactions will be recorded and reported.

Freight-in

The cost associated with transporting goods or inventory to a company, which is often included as part of the inventory cost.