During the current tax year, Jim purchased a warehouse for exclusive use in his manufacturing business. The cost of the property was 620,000, of which100,000 was attributable to the land. Which of the following statements identify the proper treatment of the expenditure?
1) A portion of the cost attributable to the building may be deducted under Section 179.
2) The $100,000 attributable to the land must be capitalized and may not be depreciated.
3) The $520,000 attributable to the building must be capitalized and depreciated.
4) The entire $620,000 must be capitalized and depreciated.