Question

A new machine with a purchase price of $96,444, with transportation costs of $7,471, installation costs...

A new machine with a purchase price of $96,444, with transportation costs of $7,471, installation costs of $5,445, and special acquisition fees of $2,991, would have a cost basis of

a.$112,351

b.$101,889

c.$96,444

d.$104,880

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Answer #1

Answer: (a) $112,351

Explanation: Cost Basis of a new machinery will be

Purchase price + Transportation Cost + Installation Cost + Special acquisition fees

= $96,444 + $7,471 + $5,445 + $2,991

= $112,351

So the correct option is (a) $112,351

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