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Problem 1: Susie and Johnny are married. They reside in and are domiciled in California. Johnny purchased a vacant office space before they got married. Susie and Johnny began leasing the office space during the tax year after using their community funds to make several improvements to and buy furnishings for the office space. Due to the above sequence of events, what could happen to the property?
Select one:
a. The property could lose its separate property character.b. The tax on the property could be reduced to 52%.c. The property could become 100% taxable to one spouse/RDP.d. The property could become property of the state.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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