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A real estate investor is considering the purchase of a four - unit office building and has the following information. The purchase price is $

A real estate investor is considering the purchase of a four-unit office building and has the following information. The purchase price is $939,490 with $8,359 in acquisition costs. Of the total cost, 77 percent is depreciable. The value of the investment is expected to increase at a rate of 3 percent per year. Selling expenses equal 6 percent of the selling price. The investors holding period is 5 years after which the property will be sold and the mortgage repaid.
What is the adjusted basis when the property is sold?

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