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ACC 2205 Cindy purchases a business for $400,000

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January 11th, 2018

Cindy purchases a business for $400,000. The fair market value of the assets of the business, excluding goodwill, is as follows:Equipment$ 90,000Building 210,000What is Cindy’s cost basis in each asset?$90,000 equipment, $210,000 building, $0 goodwill.$93,750 equipment, $140,625 building, $15,625 goodwill.$90,000 equipment, $120,000 building, $100,000 goodwill.$120,000 equipment, $280,000 building, $0 goodwill.None of the above.

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