2) On October 7, 2018, Grace Gems purchased a going business for the lump-sum price of $200,000. The fair market values of the assets Grace purchased were as follows:

U.S. government securities$10,000Land36,000Building90,000Equipment15,000Furniture9,000

What is Grace's basis in the building?

$90,000

$95,000

$100,000

$102,500

None of these