A county donates land worth $250,000 to Quarles Corporation as an inducement for Quarles to locate in the county. In addition, the city has agreed to reduce the standard real estate tax rate for Quarles by 25% on newly constructed property in the county. Quarles estimates that the reduction in taxes will save about $180,000 in taxes.
The receipt of the land produces taxable income to Quarles, and the land's basis to the corporation is $fill in the blank 2 _?_ . In addition, the real estate tax abatement produces no taxable income__ to Quarles.

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06-12-2022
Business

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A county donates land worth $250,000 to Quarles Corporation as an inducement for Quarles to locate in the county. In addition, the city has agreed to reduce the standard real estate tax rate for Quarles by 25% on newly constructed property in the county. Quarles estimates that the reduction in taxes will save about $180,000 in taxes.
The receipt of the land produces taxable income to Quarles, and the land's basis to the corporation is $fill in the blank 2 _?_ . In addition, the real estate tax abatement produces no taxable income__ to Quarles.

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