A taxpayer purchases a new comWhich of the following is NOT an exclusion?

A$)$

Gifts and inheritances received

B$)$

Unemployment compensation benefits

C$)$

Municipal bond interest

D$)$

Workers$$ compensation proceeds receiveduter for use in his consulting business. He incurs sales tax and shipping charges in connection with the purchase. Which of the following statements correctly describes the treatment of the sales taxes and shipping charges?

A$)$

The sales tax is capitalized, and the shipping charges are currently deductible.

B$)$

The sales tax is currently deductible, and the shipping charges are capitalized.

C$)$

Both are currently deductible.

D$)$

Both are capitalized.