Octo Corp.purchases a building for use in its business at a cost of $100,000.The building was built in 1930 and needs substantantial work so it can be used.Octo spends $150,000 on qualifying renovations. Octo will earn a rehabilitation credit of
A)$15,000.
B)$25,000.
C)$5,000.
D)$30,000.

Question

Quizplus · Accepted Answer

The rehabilitation credit is 10% of the cost of qualifying renovations for buildings placed in service before 1936. Therefore, $150,000 x 10% = $15,000.

Octo Corppurchases a Building for Use in Its Business at a a Cost