An asset's tax adjusted basis is usually greater than its book adjusted basis.
Because businesses generally use more highly accelerated depreciation methods for tax purposes than they do for book purposes, the tax-adjusted basis of a particular asset is likely to be lower than the book-adjusted basis.

Question

Quizplus · Accepted Answer

The statement is actually reversed. The tax-adjusted basis of an asset is typically lower than its book adjusted basis because businesses use more highly accelerated depreciation methods for tax purposes, resulting in a lower tax basis.

An Asset's Tax Adjusted Basis Is Usually Greater Than Its