Multiple Choice
Mann Inc. negotiated a 36-month lease on office space in a new commercial building. Mann paid $19,000 to a local carpenter to construct special-purpose shelving in the rented office. For tax purposes, Mann must:
A) Capitalize the $19,000 cost and amortize it over 36 months.
B) Deduct the $19,000 cost in the year of payment.
C) Capitalize the $19,000 cost as a nonamortizable leasehold improvement.
D) Capitalize the $19,000 cost and depreciate it over the applicable MACRS recovery period.
Correct Answer:
Verified
Correct Answer:
Verified
Q103: Mann Inc., a calendar year taxpayer, incurred
Q104: Mr. and Mrs. Carleton founded Carleton Industries
Q105: Deitle Inc. manufactures small appliances. This year,
Q106: KJD Inc., a calendar year corporation, purchased
Q107: Which of the following statements concerning deductible
Q108: JebSim Inc. was organized on June 1
Q109: For tax purposes, the cost basis of
Q110: Shelley purchased a residential apartment for $1,400,000
Q111: Purchased goodwill is amortizable both for book
Q113: Essco Inc., a calendar year taxpayer, made