Doug Purchased a New Factory Building on January 15, 1990

question 43

Multiple Choice

Doug purchased a new factory building on January 15, 1990, for $400,000. On March 1, 2018, the building was sold. Determine the cost recovery deduction for the year of the sale? Doug 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:

Shareholder

An individual or institution that owns at least one share of a company's stock, making them partial owners of the company.

Shareholder's Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, for harm done to the corporation.

Direct Suit

A legal action initiated directly by an individual or entity against another party, without the need for intermediary steps, typically for injury or damage.

Lawsuit

A legal action brought in court by one party against another for the purpose of obtaining a remedy such as damages or specific performance.