Marge purchases the Kentwood Krackers, a AAA level baseball team, for $1.5 million. The appraised values of the identified assets are as follows. $$\begin{array} { l r }
\text { Prepaid season tickets } & \$ 150,000 \
\text { Stadium lease } & 400,000 \
\text { Player contracts } & 500,000 \
\text { Equipment } & 100,000
\end{array}$$ The Krackers have won the pennant for the past two years. Determine Marge's adjusted basis for the assets of the
Kentwood Krackers.

Question

Marge purchases the Kentwood Krackers, a AAA level baseball team, for $1.5 million. The appraised values of the identified assets are as follows. $$\begin{array} { l r } 
\text { Prepaid season tickets } & \$ 150,000 \
\text { Stadium lease } & 400,000 \
\text { Player contracts } & 500,000 \
\text { Equipment } & 100,000
\end{array}$$ The Krackers have won the pennant for the past two years. Determine Marge's adjusted basis for the assets of the
Kentwood Krackers.

Quizplus · Accepted Answer

The Answer of Marge purchases the Kentwood Krackers, a AAA level baseball team, for $1.5 million. The appraised values of the identified assets are as follows. $$\begin{array} { l r } 
\text { Prepaid season tickets } & \$ 150,000 \
\text { Stadium lease } & 400,000 \
\text { Player contracts } & 500,000 \
\text { Equipment } & 100,000
\end{array}$$ The Krackers have won the pennant for the past two years. Determine Marge's adjusted basis for the assets of the
Kentwood Krackers.

Marge Purchases the Kentwood Krackers, a AAA Level Baseball Team