Terra Corp. purchased a new enterprise software system and incurred the following costs: What is Terra Corp.'s basis in the software system?
A) $800,000
B) $805,000
C) $811,000
D) $820,000

Name: Terra Corp. purchased a new enterprise software system and incurred the following costs: What is Terra Corp.'s basis in the software system? A) $800,000 B) $805,000 C) $811,000 D) $820,000
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Question

Terra Corp. purchased a new enterprise software system and incurred the following costs:  What is Terra Corp.'s basis in the software system?
A) $800,000 
B) $805,000 
C) $811,000 
D) $820,000

Quizplus · Accepted Answer

The initial cost plus the installation, testing and training costs must be capitalized and included in basis.