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Lanier Corporation purchased an automatic hole-punching machine priced at $62,500. The vendor’s invoice included a sales tax of $3,263. Lanier also paid the inbound transportation charges of $725 on the new machine, as well as the labor cost of $2,150 to install the machine in the factory. In addition, Lanier had to prepare the site at a cost of $3,500 before installation. Determine the cost basis for the new machine for depreciation purposes.
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Lanier Corporation purchased an automatic hole-punching machine priced at $62,500. The vendor’s invo...
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