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Cosmo Inc Purchased an Asset Costing $67,500 by Paying $13,500 Cash

Question 57

True/False

Cosmo Inc. purchased an asset costing $67,500 by paying $13,500 cash at the date of purchase and giving the seller a 5-year interest-bearing note for the $54,000 balance. Cosmo's tax basis in the asset is $13,500.

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