Octo Corp.purchases a building for use in its business at a cost of $100,000.The building was built in 1930 and needs substantial 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

A)The $150,000 expenditure qualifies as it exceeds $5,000 and the cost of the building.The credit rate is 10%.

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