The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital additions.TrueFalse
- The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital additions.
- True
- False
Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and reinvestment of income, less cost recovery deductions and disposition of assets, is referred to as adjusted basis.
Formula of adjusted basis:
Thus, adjusted basis is original cost, plus capital add...
Business
Accounting
Taxation
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