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

Required:

1. Firm L paid $6,500 cash plus $455 sales tax plus a $530 installation charge for a satellite dish.
2. TTP Inc. acquired inventory in exchange for 1,230 shares of TTP common stock listed on Nasdaq at $277 per share on the date of exchange.
3. Firm Q acquired machinery in exchange for architectural drawings rendered by Firms Qs junior partner. The partner spent 20 hours on the drawings, and his hourly billing rate is $395.
4. 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.