Determine the tax basis of the business asset acquired

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Reference no: EM133504258

Question: Determine the tax basis of the business asset acquired in each of the following cases:

Required:

a. Firm L paid $6,500 cash plus $455 sales tax plus a $530 installation charge for a satellite dish.

b. TTP, Incorporated acquired inventory in exchange for 1,230 shares of TTP common stock listed on Nasdaq at $277 per share on the date of exchange.

c. Firm Q acquired machinery in exchange for architectural drawings rendered by Firm's Q's junior partner. The partner spent 20 hours on the drawings, and their hourly billing rate is $395

d. Company C purchased equipment by paying $2,580 cash at date of purchase and financing the $22,700 balance of the price under a three-year deferred payment plan.

Reference no: EM133504258

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