An Asset Has an Original Basis of $25,000 and Depreciation

question 50

Multiple Choice

An asset has an original basis of $25,000 and depreciation has been claimed for the asset in the amount of $20,000.If the asset's adjusted basis is $15,000, what is the amount of capital improvements that have been made to the asset?

• A)$5,000
• B)$10,000
• C)$20,000
• D)$30,000
• E)None of the above

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Definitions:

Government-sponsored Businesses

Enterprises that are initiated and sometimes funded by the government but are operated under private ownership or public-private partnership.

Public Utilities

Essential services provided by both government and private sectors including water, electricity, and transportation.

Efficiency Loss

The cost to society created by market inefficiency, often associated with the misallocation of resources or markets not reaching equilibrium.

Excise Tax

is a tax levied on the sale of specific goods or services, like fuel, tobacco, and alcohol, usually to discourage their use or generate revenue.