Brown Corporation has assets with a $650,000 basis and an $800,000 FMV. The assets are subject to $250,000 in liabilities. Clark Corporation acquires all of Brown's assets and liabilities for $600,000 in cash. Brown Corporation then liquidates. What is Clark Corporation's basis in the acquired assets?
What will be an ideal response?
In a taxable asset acquisition, the purchaser's basis for the assets is their acquisition cost (Sec. 1012). In this instance, the acquisition cost is $600,000 cash plus the assumption of $250,000 in liabilities for a total of $850,000.
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Answer the following statement true (T) or false (F)
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a. adaptive selling b. transactional selling c. consultative selling d. enterprise selling
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