Question
To encourage Pillar, Inc. to build a plant near its borders, the city of Haven, Iowa gifts 20 acres of land with a value of
To encourage Pillar, Inc. to build a plant near its borders, the city of Haven, Iowa gifts 20 acres of land with a value of $150,000 and a basis of $30,000 to Pillar. The city did not have a master development plan.
- What is the income recognized by Pillar?
- What is Pillar's basis in the land?
- Same as (a) and (b), but Haven is not a city, but a minority corporate shareholder in Pillar?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428858, 133428850, 133428702, 978-0133428704
