Morrris, an Attorney, Performs 5 Hours of Legal Work for Andy

question 98

Multiple Choice

Morrris, an attorney, performs 5 hours of legal work for Andy. Morrris 's normal billing rate is $120 per hour. Andy, a software consultant, gives Morrris a new computer for his office in payment of the bill. The computer's adjusted basis was $500 and its fair market value is $550. Morrris ' basis in the computer is

• A)$- 0 -
• B)$500
• C)$550
• D)$600
• E)$1,150

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Definitions:

Thousand Cubic Feet

A unit of measure used primarily in the United States for volume, often in reference to the consumption or production of natural gas.

Natural Gas

A fossil fuel used as a source of energy for heating, cooking, and electricity generation, composed mostly of methane.

Mcf

A standard measurement of natural gas volume, equivalent to 1,000 cubic feet.

Cash Flow Analysis

A detailing of how money comes in and how money goes out over a fixed period of time.