On May 30, 2016, Jane purchased a factory building to use for her business. In August 2017, Jane paid $300,000 for improvements to the building. Determine Jane's total deduction with respect to the building improvements for 2017.
A)$2,889
B)$4,173
C)$4,815
D)$25,000
E)None of the above

Question

Quizplus · Accepted Answer

The correct answer is A.The total deduction for the building improvements for 2017 is $2,889. This is calculated by taking the cost of the improvements ($300,000) and multiplying it by the applicable depreciation rate (3.636%).

On May 30, 2016, Jane Purchased a Factory Building to Use