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Question: Sebastian purchases two pieces of equipment for $105,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $73,500 and that of the second piece of equipment is $115,500. 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.
Once you have read the extract by Sen, attempt the review and discussion questions1-3 and 5 (ignore 4) on p.165, and be prepared to discuss your answers with your colleaguesin your tutorial.
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