Sebastian purchases two pieces of equipment for $1 Appraisals of the equipment indicate that the fair ma value of the first piece of equipment is $112,700 and of the second piece of equipment is $177,100. What Sebastian's basis in these two assets?
Sebastian purchases two pieces of equipment for $1 Appraisals of the equipment indicate that the fair ma value of the first piece of equipment is $112,700 and of the second piece of equipment is $177,100. What Sebastian's basis in these two assets?
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 46P
Related questions
Question
Transcribed Image Text:Exercise 14-20 (Algorithmic) (LO. 3)
Sebastian purchases two pieces of equipment for $161,000.
Appraisals of the equipment indicate that the fair market
value of the first piece of equipment is $112,700 and that
of the second piece of equipment is $177,100. What is
Sebastian's basis in these two assets?
If required, round your interim calculations to two
decimal places. Use rounded amounts in subsequent
computations. If required, round final answers to the
nearest dollar.
Sebastian's basis for the first piece of equipment is $
43,953 X and $
108,031 X for the
second piece of equipment.
Show Transcribed Text
1st equip
2nd equip
1st ratio
2nd ratio
1st basis
2nd basis
S
112700
177100
289800 SUM(E10:E11)
0.39 =E10/(E12)
0.61 =E11/(E12)
C
43828 E10 E14
108228 =E11*E15
112700
177100
289800 -SUM(G10:G11)
0.39
0.61
43953 =G10 G14
108031 =G11 G15
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you