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Now assume Zena, Inc. purchased the assets of Delrey, Inc. for the same consideration as stated. Zena simultaneously contributed the assets acquired to Zena II,
Now assume Zena, Inc. purchased the assets of Delrey, Inc. for the same consideration as stated. Zena simultaneously contributed the assets acquired to Zena II, Inc.
On July 1, 2019 Zena, Inc. Purchased the assets ofDelrey, Inc. directly
fromDelrey's. Zena consummated the purchase using cash of $20,000,000 and property with an adjusted basis of $500,000 and a Fair Market value of
$3,000,000. At the time of the acquisition,Delreyhad the following assets:
Assets | Adjusted basis | FMV |
AR | 400,000 | 300,000 |
Marketable securities | 300,000 | 800,000 |
Loan receivable | 200,000 | 100,000 |
US GOV Securities | 500,000 | 500,000 |
Inventory | 1,000,000 | 2,000,000 |
Furniture/fixtures | 0 | 1,100,000 |
Building | 600,000 | 4,000,000 |
Covenant not to compete | 0 | 1,200,000 |
Total | 3,000,000 | 10,000,000 |
Zena's tax basis in Zena II is equal to? ________________________________
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