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) $75 000.
B) $83 500.
C) $87 000.
D) $89 000.

Question

Quizplus · Accepted Answer

The cost basis of the used machine includes the purchase price ($75,000) plus the overhaul costs ($8,000), installation costs ($4,000), and testing costs ($2,000), totaling $89,000.

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