Kieu Corporation constructs a new warehouse It pays $100,000 for materials and $70,000 to the general contractor Architectural fees total $18,000 The corporation pays $13,000 in interest on its loan to finance construction The land costs $15,000, and the real estate taxes paid on the land during co...

Kieus initial cost basis in the warehouse is 201000 and 15000 in the land Taxpay ...

Kieu Corporation constructs a new warehouse. It pays $100,000 for materials and $70,000 to the general contractor.

Question:

Kieu constructs a new warehouse. It pays $100,000 for materials and $70,000 to the general contractor. Architectural fees total $18,000. The pays $13,000 in interest on its loan to finance construction. The land costs $15,000, and the real estate taxes paid on the land during construction amount to $1,000. What is Kieu’s initial basis in the warehouse?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...