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jane purchased machinery on april 8 of the current year. the relevant costs for the year are as follows: machinery purchase price for $10,000, $800 shipping, $50 for delivery insurance, $500 for installation, $750 for sales tax, $150 for an annual tune up in september, and $200 for personal property taxes assessed in december. what is jane's tax basis for the machinery? - (answer: $ )?

1 Answer

7 votes

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= 10,000 + 800 + 50 + 500 + 750 + 150 + 200

= 12,450

= 12% × 12,450

= $1,494

Jane's Tax Basis For The Machinery Is $1,494

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User Fundhor
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