A company purchases a 15.180-square-foot building for $430,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 1,980 square feet, will be rented for $1.00 per square foot. Unit B contains 13.200 square feet and will be rented for $0.60 per square foot. How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Unit A Unit B Totals Rental value Percent of rental value Numerator Denominator % of Mkt Value 0.00% Joint Cost Allocated cost

A company purchases a 15.180-square-foot building for $430,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 1,980 square feet, will be rented for $1.00 per square foot. Unit B contains 13.200 square feet and will be rented for $0.60 per square foot. How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Unit A Unit B Totals Rental value Percent of rental value Numerator Denominator % of Mkt Value 0.00% Joint Cost Allocated cost

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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