Question

1. Chung purchased his home for $200,000, and subsequently added a garage costing $15,000 and a new porch costing $3,000. Chung, also, had the inside of his house painted for a cost of $1,500. The adjusted basis in the home is: (Tax Year 2018)

A) $200,000.

B) $215,000.

C) $218,000.

D) $219,500.

2.

During the current year, Aga purchased new car wash equipment for use in his service station business. Aga's costs in connection with the new equipment this year were as follows:

Cost of the equipment	$50,000
Sales tax on the equipment	5,000
Delivery charges	1,000
Installation and testing charges	4,500
Expenses of operating the equipment	3,000

What is Aga's basis in the car wash equipment?

A) $50,000

B) $51,600

C) $55,000

D) $60,500

Answer 1

ⓡOption (C) option (0) 6OKOO