Question
John is a contractor who has just purchased a tractor for use in his business. He paid $25,000 plus $1,250 in sales tax for the
John is a contractor who has just purchased a tractor for use in his business. He paid $25,000 plus $1,250 in sales tax for the tractor. The local municipality also imposes an annual personal property tax of $500. The tractor has an expected useful life of 5 years. What is Johns basis in the tractor for depreciation purposes?
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| a. | $25,500 |
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| b. | $25,000 |
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| c. | $26,750 |
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| d. | $26,250 |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
