Many years ago, Toxic Corp, purchased raw land and built a chemical processing plant upon it. Toxic dumped tons of hazardous material onto the plant grounds and thereby polluted the ground water used by nearby communities. In 20x1, Toxic spent $20,000,000 dollars cleaning up the pollution it had caused, but thereby increased the value of the land by $40,000,000. Toxic capitalized such costs on its AFS.  What is the may Toxic deduct currently the $20,000,000 cost on its income tax return?

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Toxic Corp can currently deduct the 20000000 cost ... View the full answer