Problem:
On January 1 of the current year, Joe purchased new car wash equipment for use in his service station business. Joe's costs in connection with the purchase were as follows:
- Cost of the equipment $43,000
- Sales tax on the equipment 3,000
- Delivery charges 800
- Installation and testing charges 2,000
- Current year personal property taxes 1,100
Required:
Question: What is the amount of Joe's basis in the car wash equipment?
A. $45,800
B. $46,100
C. $48,800
D. $49,900
Note: Show all workings.