Question
In: Accounting
Calculation of cost basis of a used machine
A used machine with a purchase price of $41,809, requiring an overhaul costing $9,833, installation costs of $6,615, and special acquisition fees of $32,417, would have a cost basis of
a. $139,539
b. $90,674
c. $51,642
d. $41,809
Solutions
Expert Solution
Calculation of cost basis of machine
Given information in the problem
Purchase price of a used machinery = $41,809
Overhaul costing = $9,833
Installation costs = $6,615
Special Acquisition fee = $32,417
Cost basis of machine = Purchase price +Overhaul costing+ Installation costs + Special Acquisition fee
=$41,809 + $9,833 + $6,615 +$32,417
=$90,674
option b.$90,674 is the correct choice
option b.$90,674 is the correct choice
balaji rao answered 3 years agoRelated Solutions
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