Follen Company is a calendar year taxpayer.On September 1,Follen signed a 24-month lease on 3,800 square feet of commercial office space.Follen paid a $2,580 fee to the real estate agent who located the space and negotiated the lease.It also paid $10,925 to rewire the space to conform to its computing and other electrical requirements.The rewiring qualifies as five-year recovery property.Compute Follen's first-year cost recovery deductions relating to the lease space.

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The Answer of Follen Company is a calendar year taxpayer.On September 1,Follen signed a 24-month lease on 3,800 square feet of commercial office space.Follen paid a $2,580 fee to the real estate agent who located the space and negotiated the lease.It also paid $10,925 to rewire the space to conform to its computing and other electrical requirements.The rewiring qualifies as five-year recovery property.Compute Follen's first-year cost recovery deductions relating to the lease space.

Follen Company Is a Calendar Year Taxpayer