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Marge Purchases the Kentwood Krackers, a AAA Level Baseball Team

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Essay

Marge purchases the Kentwood Krackers, a AAA level baseball team, for $1.5 million. The appraised values of the identified assets are as follows:
 Prepaid season tickets $150,000 Stadium lease 400,000Player contracts 500,000Equipment. 100,000\begin{array}{llr} \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.


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