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Purple Corp. purchased White Corp. in 2022. At the time of the purchase, White Corp....

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Accounting

Purple Corp. purchased White Corp. in 2022. At the time of the purchase, White Corp. had the following assets: Inventory = 75,000 Building = 525,000 Land = 300,000

a) If the purchase price was $1,000,000, what is Purple Corp.'s basis in the Land?

b) If the purchase price was $1,000,000, what is Purple Corp.'s basis in the goodwill acquired in the transaction?

c) If the purchase price was $800,000, what is Purple Corp.'s basis in the Land and goodwill?

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