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Business, 25.04.2020 00:31 pedrozac81

On November 4, 2017, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2017 and 2018, respectively, Blue took $642 and $5,128 of cost recovery. These amounts were incorrect; Blue applied the wrong percentages (i. e., those for 39-year rather than 27.5-year assets). Blue should have taken $910 and $7,272 cost recovery in 2017 and 2018, respectively. On January 1, 2019, the asset was sold for $180,000. If required, round all computations to the nearest dollar. Click here to access the depreciation tables in the textbook. a. The adjusted basis of the asset at the end of 2018 is $ . b. The cost recovery deduction for 2019 is $ . c. The on the sale of the asset in 2019 is $ .

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On November 4, 2017, Blue Company acquired an asset (27.5-year residential real property) for $200,0...
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