(1) Adjusted basis for purposes of determining gain: Multiply percent certified as allocable to plants in operation before January 1, 1969 (80 percent) by cost of entire facility ($400,000) | $320,000 |
(2) Portion of adjusted basis for determining gain attributable to post-1968 construction, reconstruction, or rection: Multiply line (1) by portion of total cost of facility attributable to post-1968 construction, reconstruction, or erection ($360,000) and divide by the total cost of the facility ($400,000) | $288,000 |
(3) Reduction for portion of depreciation deduction taken for the taxable year in which the facility was completed: | |
(a) $10,000 depreciation deduction taken for last 6 months of 1970 including $2,000 for additional first year depreciation under section 170 | $10,000 | |
(b) Multiplied by the amount in line (2) and divided by the total cost of the facility ($288,000/$400,000) | 0.72 | $7,200 |
(4) Subtotal | $280,800 |
(5) Modification for profitmaking abatement works; Multiply line (4) by estimated profits through waste recovery ($80,000) and divide by the amount in line (1) ($320,000). | |
(6) Reduction | $70,200 |
(7) Subtotal | $210,600 |
(8) Modification for period referred to in paragraph (a)(6) of § 1.169-2 exceeding 15 years: Multiply by 15 years and divide by such period (determined in accordance with paragraph (d) of this section) (20 years) | 0.75 |
(9) Amortizable basis | $157,950 |