Jordan Paid $30,000 for Equipment Two Years Ago and Has

question 81

Multiple Choice

Jordan paid $30,000 for equipment two years ago and has claimed total depreciation deductions of $15,600 for the two years.The cost of repairs during the same time period was $2,000 while a major overhaul which extended the life of the equipment cost $7,000.What is Jordan's adjusted basis in the equipment at the end of the two-year period?

• A)$14,400
• B)$16,400
• C)$21,400
• D)$30,000

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Definitions:

Homestead Act

A United States federal law passed in 1862 that granted 160 acres of public land to any individual who would farm it for at least five years.

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A transportation system consisting of a track of rails on which trains travel, used for moving passengers and goods over long distances efficiently.

Dawes Act

A law passed in 1887 that aimed to assimilate Native Americans into US society by allotting individual land parcels to heads of families, stripping away communal tribal land.

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The state of economic deprivation and lack of access to resources faced by many in India, due to factors such as population density, corruption, and historical inequities.