Monica purchased two acres of land with an old building on it for $1 million. The purchase was made to acquire the land for a new store she wanted to open on the property. Shortly after completing the purchase, Monica pays $80,000 to have the old building demolished. How does Monica treat the $80,000 demolition payment for tax purposes?

1. Locate the code section(s) that deals with this situation. State the section number(s).
2. Review the code section(s). Does it raise a need for new information to solve this question?
3. Are you able to reach a conclusion about the research question from this code section? If so, what is your conclusion(s)?