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:

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, as well as drives like those for food and sex.

Thalamus

A brain structure that acts as a relay station for transmitting sensory information to the cerebral cortex.

Hippocampus

A major component of the brain located in the medial temporal lobe, playing important roles in the consolidation of information from short-term to long-term memory and in spatial memory that enables navigation.

Remembering

The cognitive process of recalling information that has been previously learned or experienced.