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Business, 24.12.2021 07:20 helloyall40

On November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2019 and 2020, respectively, Blue deducted $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 2019 and 2020, respectively. On January 1, 2021, the asset was sold for $180,000. a. The adjusted basis of the asset at the end of 2020 is $.
b. The cost recovery deduction for 2021 is $ .
c. The loss on the sale of the asset in 2021 is $

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On November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for $200,0...
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