Determine the taxpayer’s adjusted basis in each of the following situations. If any changes are made in the original basis of the asset, explain why they are necessary.

a. Simone purchases 300 shares of Wilguess, Inc., stock in 2018 for $6,300. In 2018 and 2019, Wilguess pays cash dividends of $2 per share. In 2020, Wilguess pays a 40 percent stock dividend (nontaxable), and Simone receives an additional 120 shares of stock.

b. Symbol Corporation purchases a building in 2017 at a cost of $240,000. Annual maintenance costs on the building are $80,000. In 2019, Symbol adds a wing to the building at a cost of $60,000. In 2020, the building is painted at a cost of $25,000. Symbol deducts $4,800 in depreciation in 2017, $7,300 in 2018, and $8,100 in 2019 and 2020.

c. Lorissa purchases land as an investment in 2018 for $33,000. Property taxes on the property are $400 per year. In 2019, Lorissa is assessed $2,000 by the county assessor for her share of a sidewalk that the county builds adjacent to the land. Lorissa pays the assessment in 2020.

d. The Barton Brothers Partnership purchases a computer in 2018 for $8,000. The partnership elects to deduct the entire cost of the computer in 2018. In 2020, Barton Brothers spends $300 to repair the computer.