Equipment Was Purchased for $45,000 Plus $2,000 in Freight Charges

question 62

Multiple Choice

Equipment was purchased for $45,000 plus $2,000 in freight charges. Installation costs were $1,500 and sales tax totaled $1,000. Hiring a special consultant to provide advice during the selection of the equipment cost $3,000. What is this asset's depreciable basis?

• A) $51,500
• B) $49,500
• C) $48,500
• D) $52,500

---

Definitions:

Critical Paths

The sequence of stages determining the minimum time needed to complete a project, where any delay in the critical path tasks will directly affect the project completion date.

Critical Path

The longest sequence of activities in a project plan which must be completed on time for the project to finish by its due date.

Immediate Predecessor

Refers to an immediately preceding task or step that must be concluded before the next one can start, in a sequence of operations or processes.