corm/clientLMS/Scorm Frames.aspx?aicc_sid=AICCJACszu6A_Cr3ciPF5MDI1Q&aicc_url=https://hrblock.cs Question 2 of 5 st answer. Repairs or Capitalize er used its land as a place to store discarded materials used in his paving business. The mity to use the land as a site for a commercial building. How is the cost of removing the o The cost of removing the materials must be added to the basis in the land. It may be expensed because it is a cost attributed to the prior use of the land for the taxpayer paving business and is not considered a cost of preparation for a new use. It must be capitalized as a cost of the building. It must be capitalized because it is deferred maintenance. to search ms/scorm/clientLMS/ScormFrames.aspx?aicc_sid=AICCJACszu6A_Cr3ciPF5MDI1Q&aicc_url=https://hrblock.csod.com/LMS/scorm/aicc.aspx Exam Question 2 of 5 Select the best answer. Repairs or Capitalize Ba The taxpayer used its land as a place to store discarded materials used in his paving business. The taxpayer has an opportunity to use the land as a site for a commercial building. How is the cost of removing the old materials treated? L A. The cost of removing the materials must be added to the basis in the land. B. It may be expensed because it is a cost attributed to the prior use of the land for the taxpayer's paving business and is not considered a cost of preparation for a new use. C. It must be capitalized as a cost of the building. D. It must be capitalized because it is deferred maintenance. O Submit Answers