7 Taxpayer acquired a building on November 30, 2021. During December, 2021, the taxpayer incurs $100,000 for routine repairs including, $20,000 for fixing plumbing leaks, $50,000 for painting, and $30,000 for repairing crumbling cement. The property is placed in service on January 15, 2022. How should the taxpayer treat these costs? 

a. The entire cost of $100,000 will need to capitalized as part of cost of the building. 

b. Only $50,000 for the painting may be expensed; $50,000 will need to capitalized as part of cost of the building.

c. Only $20,000 for the plumbing may be expensed; $80,000 will be capitalized as part of cost of the building. 

d. $100,000 may be deducted as repair expense

e. The entire cost of $100,000 will need to capitalized as part of cost of the land

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The detailed answer for the above question is provided below The correct answer is c Only 20000 for ... View the full answer