Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and...

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Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased dur

business accounting

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Answer 1

Answer #1

If you convert personal property to business use, the basis will be lower of:

- fair market value at the time of conversion,

Or

- cost plus any additions or improvements, and minus any deducted casualty losses, upto the time of conversion.

For this, depreciation base for the each asset is

Asset	purchase price	FMV at time converted To business use	Depreciation bases
Computer	5,500	3,800	3,800
Printer	3,300	3,150	3,150
Desk	4,200	4,000	4,000
File cabinet	3,200	3,225	3,200

____×____

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