Dunn Company bought an old building in downtown Lafayette for $75,000.The land was not purchased;it is being leased.The building was originally placed into service in 1918.Dunn spends $100,000 to rehabilitate the building with the intent to develop a microbrewery on the site.The company retained 80% of the external and internal walls and framework.Assume the amount of the older building rehabilitation credit Dunn can claim is $10,000.What is the basis in the building for depreciation purposes?
A)$100,000
B)$145,000
C)$105,000
D)$165,000
E)$175,000

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The Answer of Dunn Company bought an old building in downtown Lafayette for $75,000.The land was not purchased;it is being leased.The building was originally placed into service in 1918.Dunn spends $100,000 to rehabilitate the building with the intent to develop a microbrewery on the site.The company retained 80% of the external and internal walls and framework.Assume the amount of the older building rehabilitation credit Dunn can claim is $10,000.What is the basis in the building for depreciation purposes?
A)$100,000
B)$145,000
C)$105,000
D)$165,000
E)$175,000

Dunn Company Bought an Old Building in Downtown Lafayette for $75,000.The