It is impractical to sell expensive products such as electronics or cosmetics through vending machines a. true b. false

True.There are many flaws in this vending machine such as it won't accept the cards, locations, malfunctioning etc. People when buying electronics products they want to have a live demo of the product . Moreover they will look for warranty card too. In those machines there wont any choice for the products what we look for. Many of them has found inconvenient in using vendor machine. While coming to cosmetics people will go for test product in vending machine this won't be applicable.

A. $12,000 B. $34,000 C. $125,000 D. $137,000

The depreciable basis of the equipment is $137,000,option D

Explanation:

The depreciable basis of the equipment is the initial cost of the equipment to be recognized as asset ,which consists of the original purchase price of $125,000,the shipping cost of $7,000,set-up and testing cost of $5,000.

The annual labor cost of running the equipment is not part of the initial cost as it is an annual expense to be recognized directly in income statement as payroll cost.

Depreciable basis=$125,000+$7,000+$5,000=$137,000