A factory bought new machinery at a price of $120,000. It cost them an additional $7,000 in shipping and delivery plus $12,000 installation. What is the cost basis of the machinery for depreciation and tax purposes? А. $120,000 В. $101,000 С. $132,000 D. $127,000 Е. $139,000

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.5P
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A factory bought new machinery at a price
of $120,000. It cost them an additional
$7,000 in shipping and delivery plus
$12,000 installation. What is the cost basis
of the machinery for depreciation and tax
purposes?
А.
$120,000
В.
$101,000
С.
$132,000
D.
$127,000
Е.
$139,000
Transcribed Image Text:A factory bought new machinery at a price of $120,000. It cost them an additional $7,000 in shipping and delivery plus $12,000 installation. What is the cost basis of the machinery for depreciation and tax purposes? А. $120,000 В. $101,000 С. $132,000 D. $127,000 Е. $139,000
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