Cobalt Industries purchases a milling machine for $12,500. In addition, it incurs a sales tax of $600, shipping costs of $1,200, and $2,300 in labor costs to put the machine in place. The estimated residual value of the machine at the end of its useful life is $900. What is the depreciable base of the machine?

Cobalt Industries purchases a milling machine for $12,500. In addition, it incurs a sales tax of $600, shipping costs of $1,200, and $2,300 in labor costs to put the machine in place. The estimated residual value of the machine at the end of its useful life is $900. What is the depreciable base of the machine?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 44P

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