Highland Corporation acquired an asset in January of 2 0 X 1 the original cost was $

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Question:

Highland Corporation acquired an asset in January of

20

1

the original cost was $

80, 000 .

The property was

7 -

year MARS property and was depreciated for book on a

10 -

year straight line basis.

The property was sold on July

1

of year three for $

45, 000 .

MACRS depreciation taken including the year of sale was $

38, 012

while book depreciation was $

20, 000 .

Accordingly, the adjusted basis was $

41, 988

and the book basis was $

60, 000 .

What is the book tax

(

Schedule M

)

adjustment and is it favorable

unfavorable

?

Posted Date: May 10, 2024 04:03 AM

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Highland Corporation acquired an asset in January of 2 0 X 1 the original cost was $

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