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:

Chest Compressions

A life-saving technique that involves pressing on the chest of someone who has had a cardiac arrest, to maintain blood circulation.

Code Situation

A term used in healthcare environments to indicate an emergency situation where immediate medical assistance is required, often specifying types like code blue for a cardiac arrest.

Pulse Checks

The act of palpating a pulse to determine heart rate and rhythm, typically performed at accessible arteries such as the wrist or neck.

Oral Airway

A medical device used to keep the airway open by preventing the tongue from covering the epiglottis.