Which of the following is not true regarding an asset's adjusted basis?
A) Tax adjusted basis is usually greater than book adjusted basis.
B) Adjusted basis is cost basis less cost recovery deductions.
C) Tax adjusted basis may change over time.
D) Tax adjusted basis is usually less than book adjusted basis.

Question

Quizplus · Accepted Answer

Tax adjusted basis is usually less than book adjusted basis due to accelerated depreciation methods allowed for tax purposes, which reduce the tax basis faster than book depreciation methods.

Which of the Following Is Not True Regarding an Asset's