Marge Purchases the Kentwood Krackers, a AAA Level Baseball Team

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:
$\begin{array}{llr} \text { Prepaid season tickets } &\$150,000\\ \text { Stadium lease } &400,000\\ \text {Player contracts } &500,000\\ \text {Equipment. } &100,000\\\end{array}$

The Krackers have won the pennant for the past two years. Determine Marge's adjusted basis for the assets of the Kentwood Krackers.