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Andrews Art Studio purchased its shop fifteen years ago. During the current year, the business installed a new roof and central air-conditioning system. Which of the following choices is correct regarding the substantial improvements made during the current year?

User Ynh
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Answer:

The cost of the assets will be classified as nonresidential property and recovered over 39 years.

Step-by-step explanation:

Non residential property means a property that is not meant for residential purposes, it is a commercial property which is for generating profit or gain.

When Andrews Art Studio installed a new roof and a central air-conditioning system for its business, the cost of the installments of the AC and new roof can be recovered over 39 years as it can be classified as a nonresidential property.

Thus the answer is

The cost of the assets will be classified as nonresidential property and recovered over 39 years.

User Jannet
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