Question

NOW 2 Online teach x + keAssignment/a ssignment Main doinvoker-StakeAssignmentSessionLocator Binprogress-false Pause Calculator s of 89.74.00, in costs of $6.116.00, and special acquisition fees of $2.452.00 A new machine with a purchase price of $14,820.00, with transportation Calculate a cost basis Select the correct answer 190,145.00 $84,829.00 5103,301.00 $93.427.00 OITTI Previous Next > Su Test for Grading MacBook Air

Answer 1

The cost basis of any investment like this purchase of machinery is equal to the original purchase prie of asset. A asset like machinery which has along life needs to be capitalized on the balance at the time of purchasing and that capitalization is considered its cost basis which includes all costs related to brining the asset to usuable condition.

So, according to this particular question the correct option is option 3

which is $103,301.00 that is derived as follows:-

cost basis = purchase price+ transportation cost+installation cost+special acquisition fees

= $84,829.00+$9,874.00+$6,116.00+$2,482.00

= $103,301.00