Chapter_9_Solutions - Truck $6,000 Computer $2,000...

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HA 4422 Review Session Chapter 9 Adjusted Basis: Company A bought equipment for $10,000 Costs incurred to ship and set-up equip. $1,000 Improvements mades to equipment $2,000 Section 179 taken 10,000 Depreciation allowed and taken $400 What is the adjusted basis of this property? Basis in conduit entities: Your original investment in BubbleCo $2,000 Your share of BubbleCo loss year 1 -1,000 Your share of BubbleCo income year 2 $2,000 Distributions to you from BubbleCo year 2 -500 What is the basis in your BubbleCo investment if it is an S-corporation? if it is a Partnership? if it is a C-corporation? You paid $10,000 for the following assets (FMV shown) of an existing business:
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Unformatted text preview: Truck $6,000 Computer $2,000 Furniture $1,000 What is the basis of each asset to you? Your grandfather gave you a house that is valued at $100,000, he paid $10,000 for it. What is your basis in the house? What if your grandfather left the house to you when he passed away? You have a truck with a $10,000 adjusted basis to you. You are converting this truck to business usage when it has a FMV of $5,000. What is the basis for depreciation? What is the basis if you were to sell it for $11,000? What is the basis if you were to sell it for $4,000?...
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This homework help was uploaded on 02/20/2009 for the course H ADM 422 taught by Professor Lhensley during the Fall '08 term at Cornell.

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