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
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