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Sebastian purchases two pieces of equipment for $141,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $98,700 and that of the second piece of equipment is $155,100. What is Sebastian’s basis in these two assets?
If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar.
Sebastian's basis for the first piece of equipment is $______ and $______ for the second piece of equipment.
Explain circumstances under which Randy’s decision would be acceptable under GAAP and circumstances under which it would definitely be unacceptable.
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