Drew Corporation purchased machinery costing $825,000 in 2015.Drew paid $5,000 for installation and testing of the machinery.Under a special election,Drew expensed $500,000 of the cost of the machinery in 2015.Drew also deducted depreciation on the machinery of $46,443 in 2015 and $79,593 in 2016.Drew's repair and maintenance costs on the machinery were $10,200 in 2015 and $13,300 in 2016.What is Drew Corporation's adjusted basis in the machinery at the end of 2016?

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The Answer of Drew Corporation purchased machinery costing $825,000 in 2015.Drew paid $5,000 for installation and testing of the machinery.Under a special election,Drew expensed $500,000 of the cost of the machinery in 2015.Drew also deducted depreciation on the machinery of $46,443 in 2015 and $79,593 in 2016.Drew's repair and maintenance costs on the machinery were $10,200 in 2015 and $13,300 in 2016.What is Drew Corporation's adjusted basis in the machinery at the end of 2016?

Drew Corporation Purchased Machinery Costing $825,000 in 2015