Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse
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Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000. The appraised fair market value of the warehouse was $75,000, and the appraised value of the land was
$100,000.
a) What is Bob’s basis in the warehouse and in the land?
b) What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse is $50,000, and the appraised value of the land is
$125,000?
c) Which appraisal would Bob likely prefer?
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Related Book For
McGraw-Hill's Taxation Of Individuals
ISBN: 9781259729027
2017 Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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