Milton Purchases Land and a Factory Building for His Business

question 47

True/False

Milton purchases land and a factory building for his business for $300,000 with $100,000 being allocated to the land.
During the first year, Milton deducts cost recovery of $4,922.Milton's adjusted basis for the building at the end of the first year is $195,078 ($200,000 - $4,922).

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Definitions:

Taxable Entity

A taxable entity is any legal identity or structure that is required to pay taxes to a federal, state, or local government.