All tax calculations should be based on the 2020 Tax Rate Schedules. Figures should be rounded to the nearest dollar. Percentages should be rounded to the nearest whole percentage (e.g., 32% instead of 32.2%)

Adjusted basis. Alfhild bought some metal-working equipment for $8,000 upfront and an agreement to pay $9,000 over the next few years. She paid Liam $3,000 to install the equipment in her workshop. As of January 1 of this year, she had paid off $5,000 of the $9,000 owed. Also, she had taken $3,000 of depreciation deductions. What was Alfhilds adjusted basis on that date?