A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $5,000, and special acquisition fees of $2,000, would have a cost basis of
A) $ 99,000
B) $107,000
C) $102,000
D) $109,000

Question

Quizplus · Accepted Answer

The cost basis includes the purchase price plus all additional costs necessary to acquire and prepare the asset for use: $94,000 + $8,000 + $5,000 + $2,000 = $109,000.

A New Machine with a Purchase Price of $94,000, with Transportation