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How does c determine basis in each asset acquired

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Reference no: EM133003803

C Co. buys a business. C pays a cash down payment of 100,000, gives its promissory note for 850,000 to the seller and incurs legal and accounting fees of 50,000 related to the purchase.

C is able to identify the following assets acquired:

Cash 50,000
IBM stock FMV 75,000
Inventory FMV 60,000
Accounts receivable FMV 15,000
Vehicles FMV 150,000
Equipment FMV 300,000
Real estate FMV 250,000
Customer list FMV 50,000

Problem 1: How does C determine its basis in each asset acquired?

Reference no: EM133003803

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