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Business, 13.03.2020 02:15 KillerSteamcar

On November 4, 2016, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2016 and 2017, 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 2016 and 2017, respectively. On January 1, 2018, the asset was sold for $180,000.
Enter the values for each item below. If required, round all computations to the nearest dollar.
(a) The adjusted basis of the asset at the end of 2017 is $.
(b) The cost recovery deduction for 2018 is $.
(c) The on the sale of the asset in 2018 is $.

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On November 4, 2016, Blue Company acquired an asset (27.5-year residential real property) for $200,0...
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