Question: Question Mode Multiple Choice Question Andrews Art Studio purchased its shop fifteen years ago. During the current year, the business installed a new roof and

Question Mode
Multiple Choice Question
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?
Multiple choice question.
The cost of the assets will be classified as nonresidential property and recovered over 39 years.
The assets will be classified as personal property and the cost will be recovered over 7 years.
The cost of the assets will be added to the adjusted basis of the building and depreciated over the remaining recovery period for the building.

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