Green Company, in the renovation of its building, incurs $9,000 of expenditures that qualify for the disabled access credit. The disabled access credit is:

Question

Quizplus · Accepted Answer

The disabled access credit is calculated as 50% of eligible expenditures up to $10,250, so in this case, the credit is 50% of $9,000, which is $4,500. However, the credit is limited to $5,000 per year, so the credit is reduced to $4,375 ($5,000 - $625 (10% of the excess of expenditures over $10,250)).

Green Company, in the Renovation of Its Building, Incurs $9,000