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.

---

Definitions:

Developmental Process

A series of steps or stages that result in growth, progress, or evolution in an individual, organization, or product.

Efficiency

The ability to achieve a goal or desired outcome with the least waste of time, effort, or resources.

Layers of Managers

Different levels of management within an organization, each with varying degrees of authority and responsibility.

Interaction

The act of communicating or dealing with others, often involving an exchange of ideas or actions.