A capital improvement to real property will always:
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increase the book value of the property by the amount the appraised value is increased.
increase the book value of the property by the cost of the improvement.
increase the property’s market value by the cost of the improvement.
b. increase the book value of the property by the cost of the improvement. c. increase the property’s market value by the cost of the improvement. d. be fully depreciated in the year the improvement is made.
Why is this correct?
Capital improvements increase the property's basis for tax purposes.
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