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 The original basis of the computer is $8,000. Adjustments are made to the basis for any expenditure that cannot v be currently deducted and for any capital 13. PR.02-61 recoveries of the computer investment. The $300 repair cost is a 2019 expense and does not affect v basis, resulting in an adjusted basis of $ х.

Answer 1

Solution: The answer is $ 0.

Reason:

1) The computer is purchased in 2017 for $ 8,000 and claimed the entire cost deduct in that year itself.

2) So, Adjusted basis after entire cost deduction will be $ 0.

3) Current year repair cost will be treated as expense as specified in the question and it does not effect the adjusted basis. So adjusted basis will be remains as $0.

Adjusted basis means taking the original cost and adding any improvements and subtracting any deductions taken in relating depreciation and depletion.