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Courtney Is Interested in Purchasing the Matrix Company

Question 8

Multiple Choice

Courtney is interested in purchasing The Matrix Company.Matrix's assets are: Courtney is interested in purchasing The Matrix Company.Matrix's assets are: ​ ​ I.If Courtney buys the stock of The Matrix for $225,000,the total basis in the assets will be $200,000. II.If Courtney pays Matrix $240,000 for the Matrix assets,Courtney's total basis in all of the assets of the business will be $123,400. ​ A) Only statement I is correct. B) Only statement II is correct. C) Both statements are correct. D) Neither statement is correct. ​
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I.If Courtney buys the stock of The Matrix for $225,000,the total basis in the assets will be $200,000.
II.If Courtney pays Matrix $240,000 for the Matrix assets,Courtney's total basis in all of the assets of the business will be $123,400.
​


A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.

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