A used machine with a purchase price of $75 000,requiring an overhaul costing $8000,installation costs of $4000 and testing costs of $2000,would have a cost basis of:
A) $89 000
B) $75 000
C) $83 500
D) $87 000.

Question

Quizplus · Accepted Answer

The cost basis includes the purchase price and all costs necessary to get the asset ready for use: $75,000 + $8,000 + $4,000 + $2,000 = $89,000.

A Used Machine with a Purchase Price of $75 000,requiring