Elnaz paid ($180,000) for a building in the current year. She also paid commissions of ($2,800,) transfer

Question:

Elnaz paid $$180,000$ for a building in the current year. She also paid commissions of $$2,800,$ transfer fee of $$150,$ survey fee of $$100,$ appraisal fees of $$850,$ and title insurance of $600.

a. What is the initial basis of building?

b. Assume Elnaz replaced the roof for $$42,000$ and deducted $$37,000$ of depreciation through the date of sale. What is Elnaz’s adjusted basis in the building?

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