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Musya8 [376]
3 years ago
13

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?
Social Studies
1 answer:
Sophie [7]3 years ago
3 0

Answer:

The cost of the assets will be classified as nonresidential property and recovered over 39 years.

Explanation:

Non residential property means a property that is not meant for residential purposes, it is a commercial property which is for generating profit or gain.

When Andrews Art Studio installed a new roof and a central air-conditioning system for its business, the cost of the installments of the AC and new roof can be recovered over 39 years as it can be classified as a nonresidential property.

Thus the answer is

The cost of the assets will be classified as nonresidential property and recovered over 39 years.

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