Problemon january 1 of the current year joe purchased new, Ask an Expert

Accounting

Problem:

On January 1 of the current year, Joe purchased new car wash equipment for use in his service station business. Joe's costs in connection with the purchase were as follows:

Cost of the equipment $43,000
Sales tax on the equipment 3,000
Delivery charges 800
Installation and testing charges 2,000
Current year personal property taxes 1,100

Required:

Question: What is the amount of Joe's basis in the car wash equipment?

A. $45,800

B. $46,100

C. $48,800

D. $49,900

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165588

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