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Keith is an insurance agent with an office near a river. He had the following assets: Accumulated Tax Cost Depreciation Basis Furniture 9 , 0

Keith is an insurance agent with an office near a river. He had the following assets:
Accumulated
Tax
Cost
Depreciation
Basis
Furniture
9,000
9,000
0
Computer
3,000
2,136
864
Copier
3,000
3,000
0
15,000
14,136
864
A flood destroyed all the assets. Keith's insurance reimbursed him $12,000 for the loss.
$7,200 for the furniture, and $2,400 each for the computer and copier.
Keith is planning to replace the computer at a cost of $4,000, but he may work from home in the future and not replace the furniture or copier.
If Keith does buy a computer for $4,000, what is its tax basis?
Is the new computer eligible for 179 expense election?
What are the consequences of not replacing the furniture and copier?
Question 54 options:
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