Determine the maximum tax deduction


Response to the following problem:

United Jersey Bank of Princeton purchased land and a building for the lump sum of $6 million. To get the maximum tax deduction, the bank's managers allocated 80% of the purchase price to the building and only 20% to the land. A more realistic allocation would have been 60% to the building and 40% to the land.

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Taxation: Determine the maximum tax deduction
Reference No:- TGS02110703

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