Tom Acquired a Used Five-Year Class Asset on November 5,2011

question 11

Essay

Tom acquired a used five-year class asset on November 5,2011 for $20,000.This was the only asset Tom acquired in 2011.He placed the asset in service on January 20,2012.However,because the asset was purchased in 2011,Tom deducted regular MACRS cost recovery on the asset for the year 2011.He did not elect to expense any of the asset under § 179.In 2012,Tom purchased no assets and because he had no taxable income,he did not deduct any cost recovery.In 2013,Tom sold the five-year asset on September 25th.Determine the basis of the five-year asset at the time of the sale.

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Definitions:

Cognitive Outcomes

Refers to the changes or improvements in an individual's knowledge, understanding, and thinking processes resulting from a learning activity or experience.

CPE

Cost Per Engagement, a metric used to determine the expense incurred for each interaction with a digital advertisement or content piece.

CPA

Stands for Cost Per Action, a metric in online advertising where the advertiser pays for each specified action linked to the advertisement.

Cost Per Engagement

A metric used in digital advertising to calculate the cost paid for each interaction (like, share, comment) with a piece of content.