Cassie Purchases a Sole Proprietorship for $125,000

question 188

True/False

Cassie purchases a sole proprietorship for $125,000.The fair market value of the tangible assets is $100,000 and the agreed to value of goodwill is $15,000.Assuming there are no other intangible assets,Cassie's basis for the tangible assets is $108,696 ($100,000 + $8,696)and her basis for the goodwill is $16,304 ($15,000 + $1,304).

---

Definitions:

Joint Membranes

Tissue layers surrounding joints, producing fluid that lubricates joint surfaces, facilitating smooth movement.

Rheumatoid Arthritis

An autoimmune disease characterized by chronic inflammation of the joints, leading to pain, swelling, and eventual destruction of joint integrity.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against pathogens and disease.

Rheumatoid Arthritis

A chronic inflammatory disorder affecting many joints, including those in the hands and feet, characterized by joint pain, swelling, and stiffness.