What is adjusted basis in the equipment


Response to the following problem:

Jordan paid $30,000 for equipment two years ago and has claimed total depreciation deductions of $15,600 for the two years. The cost of repairs during the same time period was $2,000 while a major overhaul which extended the life of the equipment cost $7,000.

What is Jordan's adjusted basis in the equipment at the end of the two-year period?

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Cost Accounting: What is adjusted basis in the equipment
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