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Meg O'Brien received a gift of some small - scale jewelry manufacturing equipment that her father had used for personal purposes for many years. Her

Meg O'Brien received a gift of some small-scale jewelry manufacturing equipment that her father had used for personal purposes for many years. Her father originally purchased the equipment for $1,500. Because the equipment is out of production and no longer available, the property is currently worth $4,000. Meg has decided to begin a new jewelry manufacturing trade or business.
What is her depreciable basis for depreciating the equipment?

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