On november 4, 2017, blue company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. in 2017 and 2018, respectively, blue took $642 and $5,128 of cost recovery. these amounts were incorrect; blue applied the wrong percentages (i. e., those for 39-year rather than 27.5-year assets). blue should have taken $910 and $7,272 cost recovery in 2017 and 2018, respectively. on january 1, 2019, the asset was sold for $180,000.
enter the values for each item below. if required, round all computations to the nearest dollar.
a. the adjusted basis of the asset at the end of 2018 is $.
b. the cost recovery deduction for 2019 is $.
c. on the sale of the asset in 2019 is $

A) The asset's cost was $200,000 in 2017

minus recovery costs for 2017 and 2018 ($910 + $7,272 = $8,182)

cost basis at December 31, 2018 = $200,000 - $8,182 = $191,818

B) the recovery cost for 2019 = $200,000 x (1 / 27.5) x (0.5 / 12) = $303

C) the asset's basis on the date of sale is = $191,818 - $303 = $191,818

Sales price - asset basis = $180,000 - $191,818 = $11,515 loss

Blue Company lost $11,515 when it sold the asset.

answer; (a) conduct a worksite inspection;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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