Dennis Purchased a Machine for Use in His Business What Is the Amount of Mr

question 106

Multiple Choice

Dennis purchased a machine for use in his business. Mr. Dennis' costs in connection with this purchase were as follows: $$\begin{array} { | l | r | } \hline \text { Note to seller } & \$ 33,000 \\\hline \text { Cash paid to seller } & 5,000 \\\hline \text { State sales tax } & 2,400 \\\hline \text { Freight to place of business } & 1,500 \\\hline \text { Wages paid to workers to install machine } & 4,200 \\\hline\end{array}$$ What is the amount of Mr. Dennis' basis in the machine?

• A) $33,000
• B) $40,400
• C) $41,900
• D) $46,100

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Definitions:

UCC

The Uniform Commercial Code represents a detailed collection of statutes that regulate every commercial transaction across the United States.

Electronic Check Presentment

A process that allows financial institutions to exchange digital images of checks instead of physical checks for faster processing.

Substitute Checks

Digital or paper reproductions of original checks that are legally equivalent for processing payments.

UCC

A complete collection of regulations that oversee business dealings within the United States, known as the Uniform Commercial Code.