Steve Corp Bought a $600,000 Apartment Building in June of 2016.Of

question 41

Multiple Choice

Steve Corp bought a $600,000 apartment building in June of 2016.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 2017 (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:

Utility Function

A representation of how individual preferences are ranked for different bundles of goods.

Income

The financial gain earned or received by an individual, household, or entity, typically measured on a monthly or yearly basis through wages, dividends, or other earnings.

Price

The financial cost of acquiring a good, service, or asset.

Apples

Edible fruits from the species Malus domestica, known for their sweet to tart flavor and use in a variety of culinary dishes and products.