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:

Holistic Health

A model of health based on the belief that the whole is more than the sum of its parts.

Equilibrium

A state of balance.

Harmony

The combination of simultaneously sounded musical notes to produce chords and chord progressions having a pleasing effect.

Hypertension

A medical condition characterized by persistently high blood pressure.