If Property Is Converted from Personal-Use Property to Business Property,the

question 72

Multiple Choice

If property is converted from personal-use property to business property,the depreciable cost basis is which of the following?

• A)Cost of the asset.
• B)FMV of the asset.
• C)The cost of a new similar asset at the date of conversion.
• D)The lower of the cost or FMV at the date of conversion.