55. Yohanse's aunt Millie gives him a storage warehouse valued at $250000 to use in his delivery business. The warehouse has been vacant since Millie inherited it from her grandfather several years ago. At that time, the warehouse had a value of $300000 and a basis of $50000.

a) What is Yohanse's initial basis in the warehouse? Explain

b) What is Yohanse's depreciable basis for the warehouse? Explain.

c) Determine the holding period for Yohanse's warehouse.

57. Chanetra inherits land from her aunt, Tameka. Tameka's adjusted basis in the land was $150000, and the fair market value at the date of her death was $200000. Six months after Tameka's death, the land is appraised at $225000. Plans for a nearby shopping mall are announced, and the fair market value skyrockets to $400000 when the land is transferred to Chanetra 9 months after her aunt's death. The total value of all Tameka's assets is $850000 at date of death and $860000 six months after death.

a) Can the executor elect the alternate valuation date? Explain

b) What is Chanetra's basis?

58. Jesse's grandfather dies on April 13 of the current year. Jesse inherits the following property:

Property Basis FMV- April 13 FMV-Oct 13

Land $5000 $20000 $13000

Stock $14000 $10000 $12000

Watch $50 $500 $500

a) What is Jesse's basis in the inherited property?

b) What is Jesse's basis in the property if the executor of the estate elects the alternate valuation date?

c) Assume that the executor elects the alternate vauation date and distributes title to the land to Jesse on June 23 of the current year, when the fair market value of the land is $17000. What is Jesse's basis in her inherited property?

d) Assume that the executor elects the alternate valuation date and distributes the property to Jesse on December 2 of the current year, when the dair market value are $15000 for the land, $11500 for the stock, and $500 for the watch. What is Jesse's basis in her inherited property?