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:

Hypotheses

Tentative explanations or propositions made on the basis of limited evidence as starting points for further investigation.

Random Assignment

A method used in experiments where participants are assigned to experimental or control groups randomly, ensuring each participant has an equal chance of being in any group.

Research Methods

Systematic techniques used to collect, analyze, and interpret data in scientific inquiry.

Observational Methods

Research techniques that involve watching and recording subjects' behavior in their natural environment.