Explore BrainMass

Explore BrainMass

    Establishing Cost Basis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    15. A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of _______.
    $ 96,000
    $108,000
    $102,000
    $110,000

    16. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
    $8,000
    $20,000
    $12,000
    $21,667

    © BrainMass Inc. brainmass.com June 3, 2020, 10:05 pm ad1c9bdddf
    https://brainmass.com/business/mergers-and-acquisitions/establishing-cost-basis-214618

    Attachments

    Solution Preview

    15. A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of _______.
    ...

    Solution Summary

    A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of

    $2.19

    ADVERTISEMENT