Final answer:
The tax adjusted basis is usually greater than book adjusted basis when it comes to an asset.
Step-by-step explanation:
The correct answer is c. Tax adjusted basis is usually greater than book adjusted basis.
The adjusted basis of an asset represents its cost for tax purposes. It is calculated by subtracting any cost recovery deductions (such as depreciation) from the asset's cost basis. The tax adjusted basis may change over time due to factors such as depreciation or capital improvements.
Book adjusted basis refers to the asset's recorded cost on a company's books for financial reporting purposes. In some cases, the tax adjusted basis may be less than the book adjusted basis, but it is more common for the tax adjusted basis to be greater. This is because tax rules often allow for higher deductions than are recognized by financial reporting standards.