Fitness Depot Purchased a Building on a Tract of Land

Multiple Choice

Fitness Depot purchased a building on a tract of land and allocated the entire cost of the purchase to building. Normally the company depreciates buildings over 40 years using the straight-line method with zero residual value and does not depreciate land. Because of the improper accounting treatment of the purchase, the company's income for the next 20 years will be

A) overstated.
B) understated.
C) unaffected.
D) cannot be determined from the information provided.