Moses Inc Purchased Office Furniture for $8,200 Plus $492 Sales Tax

Multiple Choice

Moses Inc. purchased office furniture for $8,200 plus $492 sales tax and a $150 delivery charge. Which of the following is true?

A) Moses' tax basis in the furniture is $8,842.
B) Moses' tax basis in the furniture is $8,692, and it can deduct the delivery charge.
C) Moses' tax basis in the furniture is $8,350, and it can deduct the sales tax.
D) Moses' tax basis in the furniture is $8,200, and it can deduct the sales tax and delivery charge.