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. $$\begin{array} { l r } \text { Prepaid season tickets } & \$ 150,000 \\\text { Stadium lease } & 400,000 \\\text { Player contracts } & 500,000 \\\text { Equipment } & 100,000\end{array}$$ The Krackers have won the pennant for the past two years. Determine Marge's adjusted basis for the assets of the
Kentwood Krackers.