Marge purchases the Kentwood Krackers, a AAA level baseball team, for $1.5 million. The appraised values of the identified assets are as follows.
Prepaid season tickets$150,000
Stadium lease400,000
Player contracts500,000
Equipment100,000
The Krackers have won the pennant for the past two years. Determine Marge’s adjusted basis for the assets of the Kentwood Krackers.
What will be an ideal response?
The portion of the purchase price of $1.5 million assigned to the identified assets is as follows.?
| Prepaid season tickets | $ 150,000 |
| Stadium lease | 400,000 |
| Player contracts | 500,000 |
| Equipment | 100,000 |
| $1,150,000 |
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