Allison buys equipment and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. In addition. Allison pays an installation coat of $500 and a delivery coat of $800. Allison's basis in the asset is A) $63, 500. B) $63,000. C) $64, 300. D) $60,000.

Question

Business

Phoebe Clay

6 March, 14:38

Allison buys equipment and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. In addition. Allison pays an installation coat of $500 and a delivery coat of $800. Allison's basis in the asset is A) $63, 500. B) $63,000. C) $64, 300. D) $60,000.

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Answers (1)

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Freddy Dennis · Answer 1

The answer is C) $64, 300.

Explanation:

basis in a business asset is basically the cost of that asset.

Allison's basis in the asset = $50,000 + $10,000 + $3,000 + $800 + $500 = $64,300.