Equipment Was Purchased for $250,000 Plus $500 in Freight Charges

question 75

Multiple Choice

Equipment was purchased for $250,000 plus $500 in freight charges. Installation costs were $750 and sales tax totaled $18,750. Hiring a special consultant to provide advice during the selection of the equipment cost $500. What is this asset's depreciable basis?

• A) $270,500
• B) $270,000
• C) $269,250
• D) $268,750

---

Definitions:

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating its level of risk compared to the market average.

Expected Return

The anticipated profit or loss from an investment, considering all possible outcomes and their probabilities.

Systematic Risks

Risks that impact the entire market or economy, often unavoidable by diversification.

Diversified Portfolio

An investment strategy that spreads investments across various assets to reduce risk.