Carlos leased 200 acres of farmland for use in his farming operations. The lease term was 10 years starting on January 1, 2004. The annual rental...

94. Carlos leased 200 acres of farmland for use in his farming operations. The lease term was

10 years starting on January 1, 2004. The annual rental was $100,000. Early in the lease,

Carlos constructed a $50,000 drying facility on the leased land. As of January 1, 2011,

Carlos assigned all his lease rights to Lindsey for the balance of the lease. Lindsey paid

Carlos $150,000 on January 1 for the lease term and for the value of the drying facility -

$125,000 allocated to the lease term and $25,000 to the drying facility. Additionally,

Lindsey paid the $100,000 annual rent payment to the lessor. If the drying facility were

depreciated, the deprecation deduction would be $2,000. What is the total amount

Lindsey may deduct on her 2011 tax return for the leased 200 acres including

depreciation, if any?