question #3: Terry purchased an ice-cream machine for $12,000; the seller is holding the note. Terry paid $1,500 for the required wiring and installation. Terry has deducted depreciation on the ice-cream machine for 2 years totaling $2,400. Terry owes $8,000 to the Seller. What is Terrys adjusted basis in the ice-cream machine?

$13,500

$9,600

$11,100

$19,100

question 4:

(TCO D) Sue received 50 shs of Zoll Industry stock from her Uncle Dave for a graduation present. Dave purchased the stock in 1986 at $30/sh. The stock was worth $60/sh when Sue graduated!! . What is Sues basis in the stock?

$3,000

$2,500

$1,500

$4,500