Fourteen years ago, Mr. H bought a building for use in his business. He demolished the building in the current year at a cost of $5,000 because repairs were abnormally high and he had an opportunity to rent the land at an acceptable fee. Which of the following statements is correct?

• Mr. H can deduct the $5,000 as an ordinary expense, and he can claim the undepreciated basis of the building as a loss in current year
• Neither this $5,000 nor the undepreciated basis of the building demolished is deductible for tax
• Under Sec. 290B Mr. H can deduct ONLY the $5,000 as an ordinary expense
• The undepreciated basis of the demolished building can be claimed as Sec. 1231 loss