On July 9, 2008, Tom Purchased a Computer (Five-Year Property

question 20

Essay

On July 9, 2008, Tom purchased a computer (five-year property for MACRS purposes)for $6,000, which he used in his sole proprietorship. He claimed $1,200 (0.20 × $6,000)of depreciation for 2008. On February 9, 2009, he transfers the computer and other assets of his sole proprietorship to Brewer Corporation in exchange for Brewer stock in a transfer qualifying under Sec. 351. What is the amount of depreciation for 2008 claimed by Tom? What is the amount of depreciation for 2009 claimed by Brewer Corporation? What is Brewer's basis in the computer on the date of transfer?

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Definitions:

Effective Treatment

A therapeutic approach or intervention that has been scientifically proven to improve symptoms or conditions in a meaningful way.

Observational Learning

The process of learning behaviors or skills by watching and imitating others.

Operant Conditioning

A learning process where behavior is controlled by consequences, including rewards and punishments.

Obsessive-Compulsive Disorder

A mental disorder characterized by recurring unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as an attempt to soothe anxiety.