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On January 5, 2024, Lucy purchased a new, cordless vacuum cleaner for $1,200 (the fair market value at the time). She immediately contributed it to

On January 5, 2024, Lucy purchased a new, cordless vacuum cleaner for $1,200 (the fair market value at the time). She immediately contributed it to the business. How will this contribution of property affect Lucy's outside basis for Tax Year 2024? Her outside basis will: Increase by $1,200. Increase by $600. Decrease by $1,200. Not be affected by the contribution

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