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melisa1 [442]
4 years ago
13

A professional office center is purchased for $475,000. The land value is 20% of the total acquisition cost. What is the annual

IRS depreciation deduction? (Round answer to nearest dollar.)
Business
1 answer:
Vika [28.1K]4 years ago
3 0

Answer:

$9,744

Explanation:

In the case of the annual  IRS depreciation deduction, the time period for each category assets are different. Like for commercial real estate, the time period is 39 years, for residential real estate, it would be 27.5 years.

The computation is shown below:

= (Purchase value of professional office center × remaining percentage) ÷ (applicable time period)

= ($475,000 × 80%) ÷ (39 years)

= ($380,000) ÷ (39 years)

= $9,744

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If the government increase its regulations on business, production costs go
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atchley corporation’s last free cash flow was $1.55 million. the free cash flow growth rate is expected to be constant at 1.5% f
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Atchley corporation’s last free cash flow was $1.55 million. the free cash flow growth rate is expected to be constant at 1.5% for 2 years, after which free cash flows are expected to grow at a rate of 8.0% forever. the firm's weighted average cost of capital (wacc) is 12.0%. The best estimate of the intrinsic stock price is $25.05.

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3 0
2 years ago
Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is ava
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4 years ago
Which may occur as a result of a decrease in the price of laptop computers?
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<em>Increase in quantity demanded</em>

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Demand for a product is the different quantities of that product that consumers are willing and ready to pay for at different prices.

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<em>A change in the price of a product will produce an opposite change in  the quantity that consumers  are willing to buy assuming all other factors do not change. This is referred as to as change in quantity demand. This can either be an increase or a decrease depending on the direction of the price movement.</em>

<u><em>Change in demand</em></u>

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5 0
3 years ago
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