A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of
A) $93,000
B) $90,000
C) $82,000
D) $85,000

Question

Quizplus · Accepted Answer

The cost basis of the used machine includes the purchase price ($77,000), overhaul costs ($8,000), installation costs ($5,000), and special acquisition fees ($3,000), totaling $93,000.

A Used Machine with a Purchase Price of $77,000, Requiring