if you buy a business for $120,000, includes $20,000 for legal fees and $100,000 to the seller. fmv on building was $80,000 , land fmv $10,000, and furniture fmv of $10,000. what is the basis in the building, land and fixtures?

if you buy a business for $120,000, includes $20,000 for legal fees and $100,000 to the seller. fmv on building was $80,000 , land fmv $10,000, and furniture fmv of $10,000. what is the basis in the building, land and fixtures?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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if you buy a business for $120,000, includes $20,000 for legal fees and $100,000 to the seller.

fmv on building was $80,000 , land fmv $10,000, and furniture fmv of $10,000.

what is the basis in the building, land and fixtures?

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suppose you buy land for $2,800,000 and spend $1,100,000 to develop the property.You then divide the land into lots as follows:Category Sale Price per Lot15 Hilltop lots................15 Valley lots.................$510,000$240,000How much did each Hilltop lot cost you?a. $176,800b. $83,200c. $510,000d. $36,667
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