Diane Purchased a Factory Building on April 15,1993,for $5,000,000

question 28

Multiple Choice

Diane purchased a factory building on April 15,1993,for $5,000,000.She sells the factory building on February 2,2015.Determine the cost recovery deduction for the year of the sale.

• A)$16,025
• B)$19,838
• C)$26,458
• D)$158,750
• E)None of the above

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Definitions:

State

A political entity with a defined territory, government, and the capacity to enter into relations with other states.

Northwest Territory

Territory established by the Northwest Ordinance of 1787, covering what would become the states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and part of Minnesota.

Slavery

Slavery is a system in which individuals are owned by others, deprived of personal freedom, and forced to perform labor or services.

Plantation Farming

An agricultural production system characterized by large-scale monoculture farming, often historically reliant on slave or cheap labor.