Question

Allison buys equipment and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. In addition. Allison pays an installation coat of $500 and a delivery coat of $800. Allison's basis in the asset is A) $63, 500. B) $63,000. C) $64, 300. D) $60,000.

Answer 1

The answer is C) $64, 300.

Step-by-step explanation:

basis in a business asset is basically the cost of that asset.

Allison's basis in the asset= $50,000+ $10,000+ $3,000+ $800+ $500 = $64,300.