Determine the taxpayer’s adjusted basis in each of the following situations. If any changes are made

Determine the taxpayer’s adjusted basis in each of the
following situations. If any changes are made in the original basis of the
asset, explain why they are necessary.

a. Simone purchases 300 shares of Wilguess, Inc., stock in
2008 for $6,300. In 2008 and 2009, Wilguess pays cash dividends of $2 per
share. In 2010, Wilguess pays a 40% stock dividend (nontaxable), and Simone
receives an additional 120 shares of stock.

b. Symbol Corporation purchases a building in 2007 at a cost
of $240,000. Annual maintenance costs on the building are $80,000. In 2009,
Symbol adds a wing to the building
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Determine the taxpayer’s adjusted basis in each of the
following situations. If any changes are made in the original basis of the
asset, explain why they are necessary.

a. Simone purchases 300 shares of Wilguess, Inc., stock in
2008 for $6,300. In 2008 and 2009, Wilguess pays cash dividends of $2 per
share. In 2010, Wilguess pays a 40% stock dividend (nontaxable), and Simone
receives an additional 120 shares of stock.

b. Symbol Corporation purchases a building in 2007 at a cost
of $240,000. Annual maintenance costs on the building are $80,000. In 2009,
Symbol adds a wing to the building at a cost of $60,000. In 2010, the building
is painted at a cost of $25,000. Symbol deducts $4,800 in depreciation in 2007,
$7,300 in 2008, and $8,100 in 2009 and 2010.

c. Lorissa purchases land as an investment in 2008 for
$33,000. Property taxes on the property are $400 per year. In 2009, Lorissa is
assessed $2,000 by the county assessor for her share of a sidewalk that the
county builds adjacent to the land. Lorissa pays the assessment in 2010.

d. The Barton Brothers Partnership purchases a computer in
2008 for $8,000. The partnership elects to deduct the entire cost of the
computer in 2008. In 2010, Barton Brothers spends $300 to repair the computer.

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