Sebastian purchases two pieces of equipment for $113,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $79,100 and that of the second piece of equipment is $124,300. What is Sebastian's basis in these two assets? Sebastian's basis for the first piece of equipment is $_______ and $_______ for the second piece of equipment.

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 24CE
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Sebastian purchases two pieces of equipment for $113,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $79,100 and that of the second piece of equipment is $124,300. What is Sebastian's basis in these two assets?

Sebastian's basis for the first piece of equipment is $_______ and $_______ for the second piece of equipment.

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