Several years ago, Sarah purchased a structure for $150,000 that was originally placed in service in 1929.In the current year, she incurred qualifying rehabilitation expenditures of $200,000.The amount of the tax credit for rehabilitation expenditures, and the amount by which the building's basis for cost recovery would increase as a result of the rehabilitation expenditures are the following amounts:
A) $20,000 credit, $180,000 basis.
B) $20,000 credit, $200,000 basis.
C) $20,000 credit, $350,000 basis.
D) $40,000 credit, $160,000 basis.
E) None of the above.
Correct Answer:
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