Ask Question
9 December, 18:58

A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of

a. $82,000

b. $90,000

c. $8S, 000

d. $93,000

+4
Answers (1)
  1. 9 December, 22:11
    0
    Cost basis will be equal to $93000

    So option (d) will be correct answer

    Explanation:

    We have given purchased price of machine = $77000

    overhaul costing is given $8000

    Installation cost = $5000

    And special acquisition fees is given $3000

    We have to fond the cost basis

    Cost basis will be sum of all purchased price, overhaul cost, installation cost and special acquisition fees

    So cost basis will be equal to = $77000+$8000+$5000+$3000 = $93000

    So cost basis will be equal to $93000

    So option (d) will be correct answer
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers