Carl Purchased a Building Costing $120,000 in 1998 for Use

question 41

Essay

Carl purchased a building costing $120,000 in 1998 for use in his landscape business.In 2008,he built an addition to the building at a cost of $30,000.In 2011,a tornado damaged the building.The cost of repairing the building was $22,000 and Carl's insurance company paid $16,000 of the cost of the repairs.Depreciation deducted on the building for 1998 through 2013 totaled $18,000.What is Carl's adjusted basis in the building at the end of 2013? Explain.

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Definitions:

Literacy Rates

The percentage of people within a given population who are capable of reading and writing at a specified age.

Nominal GDP

The aggregate monetary worth of every final good and service created inside a country during a particular period, unadjusted for inflation.

Prices

Refers to the amount of money required to purchase goods or services.

Real GDP

An adjustment in a country's economic production figures to account for variations in price levels, either through inflation or deflation, to accurately represent the genuine worth of its goods and services.