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Frank Farley acquired a person use asset two years ago at a cost of $800. Three months later, Frank expended $200 to extend the asset's
Frank Farley acquired a person use asset two years ago at a cost of $800. Three months later, Frank expended $200 to extend the asset's useful life and also make it more productive. During 2020, when the asset had a fair market value of $600, Frank converted the asset to business use. For depreciation purposes, at what basis amount will the asset convert to business use?
A. $800
B. 600
C. 1,000
D. 0
E None of the above
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