On June 1 of the Current Year, Tab Converted a Machine

question 51

Multiple Choice

On June 1 of the current year, Tab converted a machine from personal use to rental property. At the time of the conversion, the machine was worth $90,000. Five years ago Tab purchased the machine for $120,000. The machine is still encumbered by a $50,000 mortgage. What is the basis of the machine for cost recovery?

• A) $70,000
• B) $90,000
• C) $120,000
• D) $140,000
• E) None of the above

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Definitions:

Postganglionic Neuron

Autonomic neuron that has its cell body located within an autonomic ganglion and sends its axon to an effector organ.

Sympathetic Impulses

Nerve impulses that stimulate the body's fight or flight response, part of the autonomic nervous system.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, a critical indicator of cardiovascular health.

Carotid Baroreceptors

Sensory nerve endings located in the carotid artery that detect changes in blood pressure and help regulate it.