Question

11. PR.02-49 d. The Barton Brothers Partnership purchases a computer in 2017 for $8,000. The partnership elects to deduct the entire cost of the computer in 2017. In 2019, Barton Brothers spends $300 to repair the computer. 12. PR.02-60 13. PR.02-61 The original basis of the computer is $8,000. Adjustments are made to the basis for any expenditure that cannot be currently deducted and for any capital recoveries of the computer investment. The $300 repair cost is a 2019 expense and does not affect basis, resulting in an adjusted basis of $ X.

Answer 1

In 2017 basis in computer is totally recovered. Adjusted Basis by end of 2017 itself is $0.

Repairs does not effect basis in computers. Thus, adjusted basis in computer at the end of 2019 is $0.