Question
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $210,000. The appraised fair
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $210,000. The appraised fair market value of the warehouse was $100,500, and the appraised value of the land was $127,750. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) |
a. | What is Bobs basis in the warehouse and in the land? |
b. | What would be Bobs basis in the warehouse and in the land if the appraised value of the warehouse is $75,500, and the appraised value of the land is $152,750? |
c. | Which appraisal would Bob likely prefer? | ||||
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