A. Ali recognizes $500,000 of ordinary income and the partnership can deduct $500,000 in the current year. Which of the following statements is

A. Ali recognizes $500,000 of ordinary income and the partnership can deduct $500,000 in the current year. Which of the following statements is correct? A. Ali recognizes $500,000 of ordinary income and the partnership can deduct $500,000 in the current year. B. Ali recognizes no income and the partnership can deduct nothing in the current year. C. Ali recognizes $500,000 ordinary income and the partnership deducts the $500,000 over the building”s MACRS recovery period as depreciation expense. D. Ali recognizes ordinary income in the current year in an amount equal to the depreciation deduction the partnership claims this year for the $500,000 capitalized amount.