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Q. Strike Bowling installs automatic score keeping equipment with an invoice cost of $180,000. The electrical work required for the installation costs $8,000. Additional costs are $3,000 for delivery and $12,600 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $2,250.
Illustrate what is the total recorded cost of the automatic score keeping equipment?
Is the $18,000 expenditure deductible or nondeductible? Including proper citations to relevant authority.
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