1. Henri purchased a rental house on 6/1/20X1 for $300,000. Through 12/31/20x7, he has taken $50,000 in depreciation expenses on the rental house. On 6/1/20X3, he extended his rental house by adding in 2 rooms for $70,000. What is Henris adjusted basis in the rental house on 12/31/20x7?

Group of answer choices

a. $300,000

b. $250,000

c. $320,000

d. $370,000

2. Ahmad sold his rental house in California, for a sales price of $1,000,000. He had a gain of $400,000 from the sale of his rental house. Ahmad did not qualify to be exempt from withholding on the sale of his rental house. How much from the sales proceeds is withheld and sent to the California Franchise Tax Board as an estimated tax payment?

Group of answer choices

a. $0

b. $10,000

c. $33,300

d. $50,000