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XYZ Company, a calendar year business, purchased machinery on February 2, 2016. The purchase price of the machinery was $90,000 and the machinery was subject

XYZ Company, a calendar year business, purchased machinery on February 2, 2016. The purchase price of the machinery was $90,000 and the machinery was subject to a 7% sales tax on the purchase price. The company paid $1,500 to have the machinery delivered and set up at its factory. What is the initial basis of the asset?

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