Question

1. Sonic purchased Casino Park, a currently operating legal gambling enterprise. The purchase price for the enterprise was $2 million. The appraised values of the identified assets are as follows:

Casino Building No. 1 $650,000

Casino Building No. 2 $350,000

Client accounts receivable $500,000

Gaming Equipment $100,000

Casino Park has been a highly productive enterprise especially due to the new Rings game that was recently launched. Determine Sonic’s adjusted basisfor the assets of Casino Park based upon the purchase price.

Answer 1

Calculation of Adjusted basis for the assets Perchase Price d emberpurae $ 2000,000 Abbraivel Value Add .. Cavimo Building No. 1 $ 650,000 Cavimo Building No.2 $ 350,000 Client Accounts receivable $ 500000 - Gaining Equipmenr $ 100000 domic's Adjusred banin jou me ossers $3600,000