The adjusted basis of an asset is:
A)Its acquisition price only
B)Acquisition cost less cost recovery
C)Acquisition cost less selling price
D)Only the cash used to purchase the asset

Question

Quizplus · Accepted Answer

The adjusted basis of an asset is its acquisition cost less any cost recovery (such as depreciation, amortization, or depletion) taken over the period of ownership. This calculation reflects the current book value of the asset after accounting for these adjustments.

The Adjusted Basis of an Asset Is