$2$ pts

Question $24$

$24.$

In July $2010,$ Dan Farley leased a building to Robert Shelter for a period of $10$ years at a monthly rental of $$1\mathrm{.}000$ with no option to renew. At that time the building had a remaining estimated useful life of $20$ years. Prior to taking possession of the building. Shelter made improvements at a cost of $$18,000.$ These improvements had an estimated useful life of $20$ years at the commencement of the lease period. The lease expired on June $30,2020,$ at which point the improvements had a fair market value of $$2,000.$ The amount that Farley, the landlord, should include in his gross income for $2020$ is:

a$.$ $$6000$

b$.$ $$8000$

c$.$ $$12000$

d$.$ $$24000$

e$.$ None of these.