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Cindy purchases a business for $250,000. The fair market value of the assets of the business is as follows: Equipment Building Inventory $ 90,000 $135,000
Cindy purchases a business for $250,000. The fair market value of the assets of the business is as follows: Equipment Building Inventory $ 90,000 $135,000 15,000 What is Cindy's cost basis in each asset? a. $90,000 equipment, $135,000 building, $10,000 inventory, $15,000 goodwill. b. $93,750 equipment, $140,625 building, $15, 625 inventory c. $90,000 equipment, $135,000 building, $10,000 goodwill, $15,000 inventory d. $100,000 equipment, $150,000 building, $0 inventory, $0 goodwill. e. None of the above
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