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Z Corporation has identified the property at 123 Street as an ideal place for its new office building. The company would like to buy the

Z Corporation has identified the property at 123 Street as an ideal place for its new office building. The company would like to buy the property, demolish the building and build a new building. The cost of demolition will be approximately $500,000. Z's president asks whether the company can deduct this cost or at least depreciate it over time. What is your response, and why?

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