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:

Downsizing

The organizational strategy of reducing the workforce to cut costs or improve efficiency, often involving layoffs or elimination of positions.

Reengineering Strategy

A business management strategy focusing on the analysis and design of workflows and processes within an organization to drastically improve its performance.

HR Department

The department of a business or organization that deals with hiring, administration, and training of personnel.

Reengineering

A process of redesigning business procedures and organizational structure to achieve improvements in efficiency, effectiveness, and adaptability.