Drew Corporation purchased machinery costing $825,000 in 2012.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 2012.Drew also deducted depreciation on the machinery of $46,443 in 2012 and $79,593 in 2013.Drew's repair and maintenance costs on the machinery were $10,200 in 2012 and $13,300 in 2013.What is Drew Corporation's adjusted basis in the machinery at the end of 2013?

Question

Quizplus · Accepted Answer

The Answer of Drew Corporation purchased machinery costing $825,000 in 2012.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 2012.Drew also deducted depreciation on the machinery of $46,443 in 2012 and $79,593 in 2013.Drew's repair and maintenance costs on the machinery were $10,200 in 2012 and $13,300 in 2013.What is Drew Corporation's adjusted basis in the machinery at the end of 2013?

Drew Corporation Purchased Machinery Costing $825,000 in 2012