10. Moshe and Frances were married for many years. During their marriage, they jointly purchased a townhouse as an investment. The original cost of the townhouse, including all closing costs, expected interest and taxes, was $240,000. During the holding period, they invested an additional $50,000 to improve the property (not repairs and maintenance). They held the property as tenants by the entirety until their divorce this year. As a result of the divorce, Frances became the sole owner. At the time of the divorce, the fair market value of the property, as determined by a court appointed appraiser, was $260,000. Which of the following is correct? Frances has income of$115,000 and Moshe has a corresponding income tax deduction of $115,000. Frances' basis is $145,000. Frances' basis is $260,000. Frances' basis is $290,000. p-osrsu