Unadjusted basis definition
/What is Unadjusted Basis?
Unadjusted basis is the original purchase price of an asset . This basis includes the costs to bring the asset to its intended location and ensure that it is functioning properly. Unadjusted basis is used to calculate an asset’s subsequent depreciation . This concept does not include a deduction for salvage value , which would otherwise reduce the amount of depreciation expense . The unadjusted basis is frequently used with accelerated depreciation methods, since it accelerates the recognition of the largest possible amount of depreciation expense.