Adjusted Basis


DEFINITION of 'Adjusted Basis'

The proportionate value of an asset or security that reflects any deductions taken on, or capital improvements to the asset or security.

BREAKING DOWN 'Adjusted Basis'

Adjusted basis is used to compute the gain or loss on the sale of an asset or a security.

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  1. What is a profit and loss (P&L) statement and why do companies publish them?

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  4. Do dividends go on the balance sheet?

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