Dennis purchased a machine for use in his business. Mr. Dennis' costs in connection with this purchase were as follows: What is the amount of Mr. Dennis' basis in the machine?
A) $33,000
B) $40,400
C) $41,900
D) $46,100

Question

Dennis purchased a machine for use in his business. Mr. Dennis' costs in connection with this purchase were as follows:  What is the amount of Mr. Dennis' basis in the machine?
A) $33,000 
B) $40,400 
C) $41,900 
D) $46,100

Quizplus · Accepted Answer

Basis includes all costs associated with acquiring an asset and placing it in service. $33,000 + $5,000 + $2,400 + $1,500 + $4,200 = $46,100

Dennis Purchased a Machine for Use in His Business