During the Current Year,Ivan Begins Construction of an Office Building

question 28

Multiple Choice

During the current year,Ivan begins construction of an office building and a hotel.He incurs $10,000 in property taxes during the construction of the office building and $15,000 for the hotel.Which of the following statements is true of the property taxes during the construction period?

• A)Ivan must capitalize the property taxes on both properties each year if an election is made.
• B)Ivan must deduct the property taxes on both properties each year.
• C)Ivan may elect to capitalize the property taxes on one of the properties while deducting the property taxes on the other for each year.
• D)Ivan may elect to capitalize the property taxes for the properties in one year and then deduct the property taxes on the properties the next year.

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Definitions:

Rubiscos

The enzyme involved in the first major step of carbon fixation in the process of photosynthesis, playing a pivotal role in converting carbon dioxide into organic compounds.

Stomata

Singular stoma. Of plants, tiny gaps between pairs of guard cells in epidermis; allow internal tissues to exchange gases with the air. Can be closed to prevent water loss.

Photosystems

Cellular structures in chloroplasts where light energy is converted into chemical energy during photosynthesis.