A Tax-Free Component and a Tax-Deferred Component Are Two Taxation

A tax-free component and a tax-deferred component are two taxation benefits associated with the income derived by a property. The tax-deferred component:

A) derives from building depreciation allowances and provides for tax relief for a period of five years.
B) derives from depreciation of furniture and fittings and provides tax relief for a period of seven years.
C) derives from building depreciation allowances and the accumulated sum reduces the cost base of the property when it is sold.
D) derives from depreciation of furniture and fittings and the accumulated sum adds to the cost base of the property when it is sold.