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. $82,000

b. $90,000

c. $8S, 000

d. $93,000

Cost basis will be equal to $93000

So option (d) will be correct answer

Explanation:

We have given purchased price of machine = $77000

overhaul costing is given $8000

Installation cost = $5000

And special acquisition fees is given $3000

We have to fond the cost basis

Cost basis will be sum of all purchased price, overhaul cost, installation cost and special acquisition fees

So cost basis will be equal to = $77000+$8000+$5000+$3000 = $93000

So cost basis will be equal to $93000

So option (d) will be correct answer