The basis for depreciation on depreciable gift property received is the donor's adjusted basis of the property at the date of the gift (assuming no gift taxes are paid). The rule applies regardless of whether the fair market value at the date of the gift is greater than or less than the donor's adjusted basis
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: The basis for depreciation is the donee's gain basis. If no gift taxes are paid, this is the donor's adjusted basis at the date of the gift.
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Orville Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of Orville Company are as follows: Carrying ValueFair ValueCash $20,000 $20,000 Accounts Receivable 45,000 30,000 Inventory 60,000 35,000 Land 75,000 70,000 Building (net) 180,000 100,000 Equipment (net) 170,000 80,000 Total $550,000 $335,000 Debts of Orville are as follows: Accounts Payable$60,000 Wages Payable (all have priority) 10,000 Taxes Payable 10,000 Notes Payable (secured by receivables and inventory) 120,000 Interest on Notes Payable 6,000 Bonds Payable (secured by land and building) 150,000 Interest on Bonds
Payable 7,000 Total$363,000 Based on the preceding information, what estimated amount will be available for general unsecured creditors upon liquidation? A. $28,000 B. $121,000 C. $113,000 D. $93,000
According to the most current FASB standards, intangible assets acquired in a basket purchase that does not represent the acquisition of an entire business should be
a. valued by allocating the total purchase price according to the relative fair values of all assets acquired, regardless of whether the assets are separately tradable or contract based. b. valued by allocating the total purchase price according to the relative fair values only of intangible assets that are separately tradable or contract based. c. valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being recognized as goodwill. d. valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being expensed in the year of acquisition.
In the AIDA model, the D stands for ________
A) demand B) desire C) data D) do-it-yourself E) decoding
Money orders, cashier's checks, and certified checks are all examples of cash.
Answer the following statement true (T) or false (F)