Problem:

Tariq purchased a new business asset (five-year property) on September 30, 2015, at a cost of $150,000. On October 4, 2015, Tariq placed the asset in service. This was the only asset Tariq placed in service 2015. Tariq did not elect s. 179 and followed the current law regarded additional first year depreciation. On November 14, 2016, Tariq sold the asset.

Required:

Question: Determine the tax basis of the asset on November 14, 2016.

A. 76,500

B. 85,425

C.92,625

D.96,000

Note: Please show basic calculation