A new machine with a purchase price of $109,000,with transportation costs of $12,000,installation costs of $5,000,and special acquisition fees of $6,000,would have a cost basis of
A)$121,000
B)$132,000
C)$114,000
D)$126,000

Question

Quizplus · Accepted Answer

Cost basis includes the purchase price, transportation costs, installation costs, and any special acquisition fees. Therefore, the cost basis of the machine would be:
$109,000 + $12,000 + $5,000 + $6,000 = $132,000. 
So the best answer is B.

A New Machine with a Purchase Price of $109,000,with Transportation