Question
A taxpayer converts equipment purchased five years ago for $10,000 for personal use to business use. The fair market value (FMV) of the equipment at
A taxpayer converts equipment purchased five years ago for $10,000 for personal use to business use. The fair market value (FMV) of the equipment at the date of conversion is $8,000. One year later, the business sells the equipment for $5,000 when the FMV is 56,000. What is the basis of the equipment at the date of conversion?
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The basis of the equipment at the date of conversion is 10000 This is because the taxpayer purchased ...
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Modern Advanced Accounting in Canada
Authors: Hilton Murray, Herauf Darrell
8th edition
1259087557, 1057317623, 978-1259087554
