2.Gary inherited a Maine summer cabin on 10 acres from his grandmother. His grandparents originally purchased the property for $500 in 1950 and built the cabin at a cost of $10,000 in 1965. His grandfather died in 1980 and when his grandmother recently passed away, the property was appraised at $500,000 for the land and $650,000 for the cabin. Since Gary doesnt currently live in New England, he decided that it would be best to put the property to use as a rental. What is Garys combined basis in both the land and cabin?

3. At the beginning of the year, Poplock began a calendar-year dog boarding business called Griffs Palace. Poplock bought and placed in service the following assets during the year:

Asset Date Acquired Cost Basis

Computer equipment 3/23 $5,000

Dog grooming furniture 5/12 $7,000

Pickup truck 9/17 $10,000

Commercial building 10/11 $280,000

Land (one acre) 10/11 $80,000

Assuming Poplock does not elect 179 expensing or bonus depreciation, what is Poplocks year 1 depreciation expense for each asset?

4. At the beginning of the year, Poplock began a calendar-year dog boarding business called Griffs Palace. Poplock bought and placed in service the following assets during the year:

Asset Date Acquired Cost Basis

Computer equipment 3/23 $5,000

Dog grooming furniture 5/12 $7,000

Pickup truck 9/17 $10,000

Commercial building 10/11 $280,000

Land (one acre) 10/11 $80,000

Assuming Poplock does not elect 179 expensing or bonus depreciation, what is Poplocks year 2 depreciation expense for each asset?