Problem 1: Brenda purchased a business for $120,000 and received a building FMV $80,000 land, FMV $10,000, and furniture and fixtures, FMV $130,000. She spent $10,000 on legal fees to make the purchase. What is the basis of these item for depreciation?
A. $82,500 building, $12,500 land, $35,000 furniture and fixtures
B. $88,750 building, $11,250 land, $30,000 furniture and fixtures
C. $80,000 building, $10,000 land, $30,000 furniture and fixtures
D. $86,667 building, $10,833 land, $32,500 furniture and fixtures
Problem 2: Which of the following is not a section 197 intangible?
A. A noncompete covenant
B. A government issued license
C. Workforce place
D. A partnership interest