On October 7, 2020, Grace Gems purchased a basket of assets for the lump-sum price of $150,000. The fair market values of the assets Grace purchased were as follows: U.S. government securities $10,000 Land 36,000 Building 90,000 Equipment 15,000 Furniture 9,000 What is Grace's basis in the building? $84,375 $90,000 $105,000 $114,000
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On October 7, 2020, Grace Gems purchased a basket of assets for the lump-sum price of $150,000. The fair market values of the assets Grace purchased were as follows:
U.S. government securities |
$10,000 |
Land |
36,000 |
Building |
90,000 |
Equipment |
15,000 |
Furniture |
9,000 |
What is Grace's basis in the building?
- $84,375
- $90,000
- $105,000
- $114,000
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