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:

Humble

Not proud or arrogant; modestly low estimate of one's importance.

Chief Executive Officers (CEOs)

The highest-ranking executives in a company or organization, responsible for making major corporate decisions, managing operations, and steering the company's overall direction.

Business World

The environment or domain involving commerce, trade, and the creation and maintenance of profitable organizations.

Accountability

is the obligation of an individual or organization to account for their activities, accept responsibility for them, and to disclose the results in a transparent manner.