During 2013 and 2014, Danny pays property taxes of $3,500 each year on a piece...
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Accounting
During 2013 and 2014, Danny pays property taxes of $3,500 each year on a piece of land. During 2013, the land is vacant and unproductive. In 2014, Danny uses the land as a parking lot and generates $16,000 in income. Which of the following is true regarding the property taxes? (Points : 4)
Capitalize $3,500 each year. Deduct $3,500 each year. Capitalize $3,500 in 2013 and deduct $3,500 in 2014. Either B or C is acceptable.
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