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A building with an appraisal value of $131,089 is made available at an offer price of...

A building with an appraisal value of $131,089 is made available at an offer price of $151,651. The purchaser acquires the property for $36,725 in cash, a 90-day note payable for $20,835, and a mortgage amounting to $57,586. The cost basis recorded in the buyer's accounting records to recognize this purchase is

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Answer #1
Total Purchase cost basis:
Cash Price = $           36,725
Add: Notes payable = $           20,835
Add: Mortgage payable = $           57,586
Total Purchase cost basis = $       1,15,146
Therefore, Cost basis recorded in buyer's accounting records to recognize purchase is $115,146
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