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:

Role Management

The process of defining, adjusting, and adhering to the roles within an organization to ensure effective functioning and minimize role conflict.

Organizational Socialization

The process by which new employees acquire the necessary knowledge, skills, and behaviors to become effective members of an organization.

Pre-employment

Pertains to the stage and activities involved in verifying the qualifications and suitability of a candidate before officially hiring them for a job.

Encounter

An interaction or meeting between people, often used in the context of customer service or interpersonal communication.