contestada

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000. The appraised fair market value of the warehouse was $75,000, and the appraised value of the land was $100,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. What is Bob's basis in the warehouse and in the land? Bob's Basis Warehouse Land b. What would be Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $50,000 and the appraised value of the land was $125,000? Bob's Basis Warehouse Land c. Which appraisal would Bob likely prefer? Appraised value in part (a) O Appraised value in part (b)

Respuesta :

AmishaSrivastava

Bob would likely prefer the appraisal from part (a), because the appraisal allows him to allocate more basis to the warehouse, which is depreciable.

What is appraisal?

  • Appraisal is the process of determining the value of real estate, antiques, or collectibles.
  • Real estate transactions are often supported by appraisals because each property is unique.
  • Historically, however, valuation practice has recognized that there are three main methods of valuation: a comparison approach, an income approach, and a cost approach.
  • A qualified appraisel prepares a report based on face-to-face inspections, recent sales of similar properties, current market trends, home details such as size, condition, floor plan and amenities.
  • The purpose of the evaluation is to state the reasons and scope of the evaluation order.
  • Estimating defined values ​​for property division, or performing analysis or consulting work related to  property decisions.

to learn more about appraisal from the given link :

https://brainly.com/question/28319917

#SPJ4

Otras preguntas