Question
On May 1, 2022, Sally Company started a company and incurred startup costs from investigation and other legal and accounting costs in 2022 totaling $47,000.
On May 1, 2022, Sally Company started a company and incurred startup costs from investigation and other legal and accounting costs in 2022 totaling $47,000. Determine the total amount that Sally may deduct for 2022 amortization of the startup costs.
| a. | $2,089 | |
| b. | $1,867 | |
| c. | $5,000 | |
| d. | $6,867 |
Carlos purchased an apartment building on March 27, 2022, for $2,000,000. Determine the cost recovery for 2022.
| a. | $72,720 | |
| b. | $51,280 | |
| c. | $57,580 | |
| d. | $40,660 |
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
