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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
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
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