Income Tax Accounting !!
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $127,000. The appraised fair market value of the warehouse was $120,750, and the appraised value of the land was $144,750. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
| 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 $88,550, and the appraised value of the land is $176,950? |
| c. | Which appraisal would Bob likely prefer? | ||||
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