Steve Corp Bought a $600,000 Apartment Building in June of 2013

question 81

Multiple Choice

Steve Corp bought a $600,000 apartment building in June of 2013. Of the purchase price, $104,950 is allocated to the value of the land. What is the maximum amount of depreciation that the company can claim in 2014 (year 2) for the building?

• A)$9,752
• B)$18,000
• C)$25,000 under the election to expense business property
• D)$21,816
• E)You cannot depreciate property costing over $500,000

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Definitions:

Revenue-generating Holdings

Assets or investments that generate income or profit for a business or individual.

Equipment-based Services

Services that primarily rely on physical machinery and equipment to deliver value to customers, such as laundry, photography, or heavy machinery operations.

Idle Production Capacity

Refers to the available but unused capacity within a manufacturing operation to produce goods.

Off-peak Pricing

A pricing strategy that involves offering lower prices during times of lower demand to encourage usage or purchase.