On February 20, 2012, Susan paid $200,000 for a qualified leasehold improvement to an office building that she is going to lease to John.The lease will begin on June 1, 2012, and terminate on May 31, 2022.At the termination of the lease, the improvement will be worthless.Susan did not elect to treat the leasehold improvement property as § 179 property.She does not take additional first-year depreciation. Determine Susan's deductible loss as a result of the termination of the lease.
A) $0.
B) $123,503.
C) $127,990.
D) $128,631.
E) None of the above.
Correct Answer:
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