FINANCIAL RESULTS
Albanese Cormier Holdings, LLC and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2025 and 2024
4.
Inventory – property held for sale Inventory held for sale consisted of the following:
Indian Springs
2025
2024
Acquisition and development costs
$ 5,381,757
$ 5,381,757
Less lots sold in 2018 Less lots sold in 2019 Less lots sold in 2020 Less lots sold in 2021 Less lots sold in 2022 Less lots sold in 2023 Less lots sold in 2024 Less lots sold in 2025 Lots available for sale
(575,485) (451,891) (712,296) (497,449) (429,209) (618,414) (742,690) (169,284)
(575,485) (451,891) (712,296) (497,449) (429,209) (618,414) (742,690)
-
$ 1,185,039
$ 1,354,323
Inventory acquisition and development costs are valued at historical cost. Upon completion of a sale of a residential lot, an allocation of historical cost is recognized in the same period, reducing inventory value proportionally. 5. Basis Step Up In accordance with ACS Topic 805, the Company’s acquisition of the member’s interest (see Note 1-Acquisition of Member’s Interest), represents a change in control. On the Acquisition Date, the Company’s assets and liabilities were remeasured and recorded at fair value. The remeasured basis was determined based on appraisals by outside third parties as well as a test of current net operating income from the most recent accounting period applied against an applicable capitalization rate. The company used the lower of the two computations, which in most cases was the appraised value by outside third parties. The total amount of the basis adjustment was $144,175,958, which was allocated to land and buildings at $12,572,045 and $131,603,912 respectively. This revaluation adjustment will result in additional deprecation in the years ended December 31, 2025 and 2024 of $2,836,631 and $2,917,370 calculated based on the remaining lives of the respective assets ranging from 29 to 39 years.
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