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Roman55 [17]
2 years ago
11

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $215,000. The

appraised fair market value of the warehouse was $112,500, and the appraised value of the land was $138,750. What would be Bob's basis in the warehouse and in the land if the appraised value of the warehouse is $92,500, and the appraised value of the land is $158,750?a. land =_________b. warehouse =__________
Business
1 answer:
Rudiy272 years ago
8 0

Answer:

a. $135,845.77

b. $79,154.23

Explanation:

The computation of the basis is shown below:

a. For Land

= Total value of the property × land appraised value ÷ Total appraisal value

= $215,000 × $158,750 ÷ $251,250

= $135,845.77

b. For warehouse

= Total value of the property × warehouse appraised value ÷ Total appraisal value

= $215,000 × $92,500 ÷ $251,250

= $79,154.23

The total appraisal value is

= $92,500 + $158,750

= $251,250

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Answer:

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Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

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