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

Question

3 years ago

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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 $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:

Rudiy27 · Answer 1 · 2022-06-12T03:08:30+03:00

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