Buyer purchases all assets of Corporation, Inc. for $1,000,000. Buyer also assumed all of Corporation's outstanding liabilities in the sale. Buyer pays a broker's commission of $10,000 on the sale. Cororpation, Inc. has the following Balance Sheet on the date of sale Assets Basis FMV Cash 15,000 15,000 Accounts Receivable 35,000 48,000 Inventory 20,000 60,000 Patent 70,000 100,000 Land 750,000 780,000 Depreciable Property - net of A/D 90,000 120,000 Total Assets 980,000 1,123,000 Liabilities 20,000 20,000 Equity 960,000 1,103,000 Total Liabilities and Equity 980,000 1,123,000

Required

 What is the gross proceeds of the sale?
what amount is allocated to each class of asset?

Answer rating: 100% (QA)

Gross Proceeds and Asset Allocation in Corporation Incs Sale Gross Proceeds The gross proceeds of th... View the full answer