Sebastian purchases two pieces of equipment for $199,000. appraisals of the equipment indicate that the fair market value of the first piece of equipment is $139,300 and that of the second piece of equipment is $218,900. 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 $ $ for the second piece of equipment.

Example1 lcnrv: ted company uses the lower of cost or nrv method in valuing its inventory items. the inventory at december 31, 2017, consists of products a, b and c, each having 1,000 units. relevant unit data for these products appear below: item a item b item c cost $ 80 $80 $80 estimated selling price 180 100 90 estimated selling cost 30 30 30 required: using the lower of cost or net realizable value rule, determine the proper value of inventory for balance sheet reporting purposes at december 31, 2017. prepare any necessary journal entry. apply the lower of cost or nrv method: • on an individual inventory basis; • on a group basis; • on a total inventory basis. solution worksheet: inventory (on an individual basis): inventory value item nrv cost lc- item a item b item c total inventory (on a group basis): inventory value item nrv cost lc- group 1 (item a and b) group 2 (item c) total inventory (on an aggregate inventory basis): inventory value item nrv cost lc- total inv