Bernice purchased land and a building for use in connection with her business The costs associated with this purchase were Cash down payment $ 40,000 Mortgage on property 350,000 Survey costs 2,000 Title and transfer taxes 2,500 Charges for hookup of gas, water, and sewer lines 3,000 Seller owed ba...

It is worth noting that for tax purposes any costs that are incur ...

Bernice purchased land and a building for use in connection with her business. The costs associated with

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Bernice purchased land and a building for use in connection with her business. The costs associated with this purchase were:

Cash down payment	$ 40,000
Mortgage on property	350,000
Survey costs	2,000
Title and transfer taxes	2,500
Charges for hookup of gas, water, and sewer lines	3,000
Seller-owed back property taxes paid by Bernice	5,000

What is Bernice's tax basis for the land and building?

a. $ 44,500

b. $394,500

c. $397,500

d. $402,500

Related Book For answer-question

Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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Posted Date: Nov 29, 2017 10:13 AM

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Bernice purchased land and a building for use in connection with her business. The costs associated with

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Financial Accounting

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