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Business, 19.03.2021 01:00 Gloryreak8201

On November 4, 2018, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2018 and 2019, 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 property). Blue should have taken $910 and $7,272 of cost recovery in 2018 and 2019, respectively. On January 1, 2020, 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 2019 is $fill in the blank 1 . b. The cost recovery deduction for 2020 is $fill in the blank 2 . c. The on the sale of the asset in 2020 is $fill in the blank 4

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On November 4, 2018, Blue Company acquired an asset (27.5-year residential real property) for $200,0...
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