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