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Earl purchases all the assets and assumes the liabilities of Buddy's Market Shop. The details concerning the adjusted basis and fair market value of Buddy's
Earl purchases all the assets and assumes the liabilities of Buddy's Market Shop. The details concerning the adjusted basis and fair market value of Buddy's assets and liabilities are as follows: Asset Adjusted Basis Fair Market Value Inventory $30,400 $38,400 Equipment 23,300 68,700 Land 9,200 15,300 Building 115,700 150,100 Liabilities (59,900) (59,900) a. If Earl pays $241,000 for Buddy's net assets, then Earl's basis in the assets, liabilities, and goodwill is $ b. Assume that Buddy's Market Shop is a closely held corporation and that Earl pays $241,000 for all the stock. Earl's basis in the stock is $
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