Lucy purchased a new machine for use in her business she incurred the following

Question

Lucy purchased a new machine for use in her business she incurred the following costs with the purchase 2000 cash paid , 10000 finance, 500 delivery charge and 200 installlation charge. What s her basis in the machine

Paul wishes to claim the CTCIACTC by claiming his nephew, Jack, as a qualifying child dependent brings in Jack's middle school records showing that Jack's address is Paul's address. Assuming t eligibility requirements are met, what additional questions should the Tax Professional ask to meet requirements for CTCIACTC? 0 Does the child receive social security disability income? Is the child disabled? O Do the child's parents live with you? Why are the parents not claiming the dependent? O How did you keep track of your business income and expenses? O For what portion of the year has the child resided in the United States? How long has the child lived with Mark for follow up

Explanation / Answer

Basis of Machine = Toatal expenses oucurred at the time of purchasing the machinery and at the time of commencing the operation with it.

so in this case

Cash-$2000

Finance- $10000

delivery- $500

Installation- $ 200

total= $12700 is the basis of machine

second questtion

Ans is d

As this the next genuine question to be answered for the claim/ excemption.

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