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