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puteri [66]
4 years ago
8

Bobby purchased a new machine for use in his business. He incurred the following costs with the purchase: $3,300 cash paid, $12,

500 financed, a $450 delivery charge, and a $330 installation charge. Bobby's basis in the machine is __________.
Business
1 answer:
Rudiy274 years ago
4 0

Answer:

$16,580

Explanation:

Bobby's basis in the machine is the amount of cash paid by Bobby for the machine.

Given that,

incurred costs with the purchase:

$3,300 cash paid

$12,500 financed

$450 delivery charge

$330 installation charge

Bobby's basis in the machine:

= Cash paid + Amount financed + Delivery charge + Installation charge

= $3,300 + $12,500 + $450 + $330

= $16,580

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the value of a machine depreciates at the rate of 20% p. a. compound depreciation find the total compound depreciation after 3 y
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3 years ago
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