Question

Pettit Company purchased heavy equipment by giving the seller a $30,000 cash down payment and a 5-year interest-bearing note for the $170,000 balance of the price. Compute Pettit's book basis and tax basis in the equipment.

A) Book basis $30,000; tax basis $170,000
B) Book and tax basis $200,000
C) Book basis $200,000; tax basis $30,000
D) Book and tax basis $30,000

Answer 1

A

Step-by-step explanation:

Hopefully this helps