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20. Based on Jimmy's investment history, what is the average cost basis per share of Adco stock? a) $25.00 b) $25.81 c) $25.38 d) $23.58

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20. Based on Jimmy's investment history, what is the average cost basis per share of Adco stock? a) $25.00 b) $25.81 c) $25.38 d) $23.58 21. Jack purchased a house in January 2013 for $119,000. The house was not his primary residence. During the time Jack owned the house, he deducted $13,000 for depreciation. The county installed water and sewer connections (valued at $7,000). Jack had to rewire the house, which cost $1,500. He has lived in the house since January of 2016. What is Jack's adjusted basis in the house? a) $114,500 b) $106,000 c) $127,500 d) $119,000 22. Using the same information in the previous question, calculate Jack's adjusted basis in the Jack has the folowing expenses in the final year that he home as he prepares to sell owns the house Replace the roof Replace broken window pane Patch the kitchen wal 200 345 220 $5,000 Outside security lights 50 Landscaping $ 125 Replace gravel in the driveway a) $120,265 b) $120,045 c) $119,500 d) $133,045 23. Larry's personal residence was damaged by fire and he was forced to buy a new home. Which of the following is listed incorrectly as an adjustment that must be made to the basis of a replacement property that resulted from an involuntary conversion? a) Decrease the basis by any loss recognized on the conversion b) Decrease the basis by any money received that the taxpayer did not spend on similar property c) Decrease the basis by any gain recognized on the conversion. d) Increase the basis by any cost of acquiring the replacement property 24. With home replacement due to fire, Larry experienced an involuntary conversion, which must be reflected in his tax return. Which of the following is incorrectly included as an example of an involuntary conversion? a) Inheritance b) Casualty c) Theft

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