purchased heavy equipment by giving the seller a $30,000 cash down payment and a 5-year interest-bearing note for the $170,000 balance of the price. Compute Pettit's book basis and tax basis in the equipment

$200,000

Explanation:

The book and tax basis will be the same in this instance because the equipment was purchased newly.

The book and tax basis will be the price of the equipment:

Price = Cash down payment + Present value of interest bearing note

= 30,000 + 170,000

= $200,000

Book and Tax basis is therefore $200,000

answer; communication channel;

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.