For federal income tax purposes, expenditures for capital improvements (enhancements) for income-producing properties are:
A: Deductible in the year incurred, but only to the extent of rental income received;
B: Added to the cost basis of the property;
C: Deductible at the rate of $1,000 per year;
D: Not depreciable under any circumstances.
Answer: B: Added to the cost basis of the property;
You might also like to view...
Data for Kalil, Inc follows
Kalil, Inc Comparative Income Statement Years Ended Dec. 31, 2017 and 2016 2017 2016 Net Sales Revenue $550,000 $500,000 Expenses: Cost of Goods Sold 245,000 220,000 Selling and Administrative Expenses 100,000 96,000 Other Expenses (Interest Expense) 12,000 9,000 Income Tax Expense 58,000 47,000 Total Expenses $415,000 $372,000 Net Income $135,000 $128,000 Prepare a horizontal analysis of the comparative income statement of Kalil, Inc (Round to one decimal place.) Use a multi-step format for the income statement. What will be an ideal response
Defensive communication often occurs because the receiver is attempting to
A) create communication barriers. B) confuse the sender. C) impress the sender. D) protect his or her self-esteem.