Accounting Riverboat Adventures pays $480,000 plus$10,000 in closing costs to buy out acompetitor. The real estate consists of landappraised at $51,000, a building appraisedat $209,100, and paddleboats appraised at$249,900. Compute the cost that should beallocated to the building.

Step 1:- Define Fixed AssetsSometimes a company will buy a few fixed assets for one price, such as…

Answered: Riverboat Adventures pays $480,000 plus…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 45P

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Riverboat Adventures pays $390,000 plus $11,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $64,500, a building appraised at $137,600, and paddleboats appraised at $227,900. Compute the cost that should be allocated to the building.
Riverboat Adventures pays $310,000 plus $15,000 in closing costs to purchase real estate. The real estate consists of land appraised at $35,000, a building appraised at $105,000, and land improvements appraised at $210,000. Compute the cost that should be allocated to the building. Multiple Choice $97,500. $105,000. $89,178. $140,000. $93,000.
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Riverboat Adventures pays $480,000 plus $10,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $51,000, a building appraised at $209,100, and paddleboats appraised at $249,900. Compute the cost that should be allocated to the building.