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What happens if basis is not established for an asset which is sold? A. Basis will be assumed to be one-half of the sale price.
What happens if basis is not established for an asset which is sold?
A. Basis will be assumed to be one-half of the sale price.
B. The IRS will assume the basis is $0 and consider all the proceeds to be gain.
C. The basis will be adjusted to reflect the fair market value at the time of the sale.
D. Basis becomes the amount originally paid for the asset with no adjustments.
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