Purple Corp. purchased White Corp. in 2022. At the time of the purchase, White Corp....
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Accounting
Purple Corp. purchased White Corp. in 2022. At the time of the purchase, White Corp. had the following assets: Inventory = 75,000 Building = 525,000 Land = 300,000
a) If the purchase price was $1,000,000, what is Purple Corp.'s basis in the Land?
b) If the purchase price was $1,000,000, what is Purple Corp.'s basis in the goodwill acquired in the transaction?
c) If the purchase price was $800,000, what is Purple Corp.'s basis in the Land and goodwill?
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