Hi Diane,
In John's situation, you indicate needs to treat his $120K improvements as a selling expense.
Assume that the $120K improvement were all made to the building structure asset.
So, would he first add the $120K to the other Sales Expenses to determine an overall Sales Expense total, and then use that figure to calculate the respective Sale Expenses for each asset?
Or would he use the initial Sales Expenses (sans the $120K amount) to determine initial Sales Expenses for each asset and then add the $120K amount to the calculated Sales Expense for the building structure since
the improvements were made specifically to the building?
Or does it matter as it seems that one would get the same total gain (profit) when summing all of the assets gains (profits)?
Thanks
