In problem 89 of Chapter 9, you were asked to determine the initial basis of Emelio and Charita’s business, investment, and personal use assets. In this problem, you are to determine the adjusted basis of the assets as of December 31, 2011. You should disclose all calculations made to arrive at the December 31, 2011, basis values. For depreciable assets and amortizable assets, present the basis in the following form:

Asset: _________________________________

Date acquired: _________________________

Initial basis: _________________________

Depreciation/Amortization life: ________

Depreciation/Amortization deducted to December 31, 2011: __________

(per the schedule here)

Basis on December 31, 2011:_____________

Depreciation/Amortization Schedule:

Assume that Emelio and Charita have always deducted the maximum depreciation allowable. However, in 2011, because their income is less as a result of the opening of Charita’s new business, they do not wish to expense any eligibleamounts.

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Year Depreciable Basis Depreciation Percentage Depreciation