Question I. Allison buys an asset and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. Also, Allison pays an installation cost of $500 and a delivery cost of $800. Allison's basis in the asset is
a. $60,000.
b. $63,000.
c. $63,500.
d. $64,300.
Question 2. Edward purchased stock last year as follows:
Month Shares Total Cost
March 100 $ 270
July 200 600
October 600 $1,200
In April of this year, Edward sells 80 shares for $250. Edward cannot specifically identify the stock sold. The basis for the 100 shares sold is
a. $160.
b. $184.
c. $216.
d. $240.