Amount $100,000 $10,000 $10,000 $10,000 Recently, you purchased some equipment and incurred the following costs: Item Cash paid for the equipment The cost of improvements or additions to extend the life of equipment and to make it more productive. First year operating expenses of equipment The fair market value of property you gave up to acquire the equipment Installation costs to put the property in service Costs to test the equipment Shipping costs, including insurance you paid Legal fees to acquire property or defend title to the equipment like Liabilities assumed by you from the seller Costs for normal repairs and maintenance to keep property in good operating condition Taxes you paid, such as sales tax and import tariffs and duties Total $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $200,000 What is the initial basis of the equipment