Reference no: EM133012043

Question - Dino and Virgil operated a service station for many years as a partnership. In the current year, they purchased a vacant service station and land at a better location and moved their business to the new location. As a result of the move, Dino and Virgil incurred the following related expenses:

Cost of land and building at new location $150,000

Cost to move and install the existing machinery, equipment, etc., from old location to new location 10,000

Environmental costs to clean up old location contamination 35,000

How much of the expenses shown above can Dino and Virgil currently deduct (not considering depreciation or Sec. 179 applicability) as an expense on their current-year partnership income tax return?

a. $0

b. $10,000

c. $35,000

d. $45,000