A Used Machine with a Purchase Price of $77,000, Requiring

question 41

Multiple Choice

A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of

• A) $93,000
• B) $90,000
• C) $82,000
• D) $85,000

---

Definitions:

Securities and Exchange Commission

The U.S. federal agency responsible for regulating the securities industry and ensuring public companies adhere to disclosure laws.

Proprietorship

A business that is owned and run by one individual, where there is no legal distinction between the owner and the business entity.

Legal Entity

An organization that possesses legal rights and responsibilities, including the ability to enter contracts, sue, and be sued; can be a company, non-profit, or government organization.

Governmental Agency

An organization established by a government to administer specific legislation and carry out public policies.