Hester Corporation purchases a building by giving stock with a fair market value of $30,500 (original cost was $20,600) and borrowing $205,900. Hester pays closing costs of $11,800 on the purchase. For property tax purposes, the land is assessed at $11,200 and the building at $44,800. Before buying the property, Hester hires an independent appraiser and receives appraisals of $21,000 on the land and $279,000 on the building. Determine the initial basis amounts for Hester using the assessed property values and the appraised values. Using the assessed property values: Relative Total Initial Property Tax Value Value % Cost Basis Land $ % $ $ Building Accounting numeric field % Total Using the appraised values: Relative Total Initial Appraised Value Value % Cost Basis Land $ % $ $ Building % $ Total Which allocation method should Hester Corporation use to maximize their cost recovery? Appraised value Hester Corporation purchases a building by giving stock with a fair market value of $30,500 (original cost was $20,600) and borrowing $205,900. Hester pays closing costs of $11,800 on the purchase. For property tax purposes, the land is assessed at $11,200 and the building at $44,800. Before buying the property, Hester hires an independent appraiser and receives appraisals of $21,000 on the land and $279,000 on the building. Determine the initial basis amounts for Hester using the assessed property values and the appraised values. Using the assessed property values: Relative Total Initial Property Tax Value Value % Cost Basis Land $ % $ $ Building Accounting numeric field % Total Using the appraised values: Relative Total Initial Appraised Value Value % Cost Basis Land $ % $ $ Building % $ Total Which allocation method should Hester Corporation use to maximize their cost recovery? Appraised value