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Part $1$

Explain how the cost basis of depreciable property is determined.

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Part $1$

Choose the correct choice below.

A$.$

The cost basis is the original cost basis of the$$ asset, adjusted by allowable increases or decreases

B$.$

The cost basis is usually the purchase price of the$$ property, plus any sales$$ taxes, transportation$$ costs, and the cost of installation or improving the property to make it fit for intended use

C$.$

The cost basis represents the amount of capital that remains invested in the property and must be recovered in the future through the accounting process

D$.$

The cost basis is the amount that will be paid by a willing buyer to a willing seller for a$$ property, where each has equal advantage and is under no compulsion to buy or sell