Dunn Company Bought an Old Building in Downtown Lafayette for $75,000.The

question 7

Multiple Choice

Dunn Company bought an old building in downtown Lafayette for $75,000.The land was not purchased;it is being leased.The building was originally placed into service in 1918.Dunn spends $100,000 to rehabilitate the building with the intent to develop a microbrewery on the site.The company retained 80% of the external and internal walls and framework.Assume the amount of the older building rehabilitation credit Dunn can claim is $10,000.What is the basis in the building for depreciation purposes?

• A)$100,000
• B)$145,000
• C)$105,000
• D)$165,000
• E)$175,000