The adjusted basis of an asset is:
A)The cost basis less any accumulated depreciation.
B)The cost of the asset.
C)The fair market value of the asset.
D)The trade-in value of the asset.

Question

Quizplus · Accepted Answer

The adjusted basis of an asset is the cost basis (original cost of the asset) less any accumulated depreciation. This adjusted basis is important when determining gains or losses on the sale or disposition of the asset.

The Adjusted Basis of an Asset Is