MC Terry purchased an ice-cream machine for $15,000; the seller is holding the note. Terry paid $1,500

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MC Terry purchased an ice-cream machine for $15,000; the seller is holding the note. Terry paid $1,500 for the required wiring and installation. Terry has deducted depreciation on the ice-cream machine for 2 years totaling $3,000. Terry owes $8,000 to the Seller. What is Terry's adjusted basis in the ice-cream machine?
$16,500
$12,000
$21,500
$13,500
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Intermediate Accounting

ISBN: 978-0470161012

9th Canadian Edition, Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

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