On May 30, 2012, Jane Signed a 20-Year Lease on a Factory

Multiple Choice

On May 30, 2012, Jane signed a 20-year lease on a factory building to use for her business. The lease begins on June 1, 2012. In August 2012, Jane paid $300,000 for qualified leasehold improvements to the building. Jane takes additional first-year depreciation. Determine Jane's total deduction with respect to the leasehold improvements for 2012.

A) $2,890.
B) $150,000.
C) $151,445.
D) $300,000.
E) None of the above.