Compute the adjusted basis at the time of sale of the following office property. The purchase price was $480,000. The property will be financed with a 30-year, 8% mortgage loan with monthly payment and loan-to-value (LTV) ratio of 80%. There will be no up-front financing cost. The market value of the property increased to $540,000 over the two-year holding period. Selling costs are 3 percent of the sales price. The investor is in the 30 percent ordinary tax bracket. Capital gains will be taxed at 15 percent. 15 percent of the initial purchase price represented the value of the land. The remaining 85 percent has been depreciated using straight-line depreciation and a 39-year cost recovery period. $30,000 in capital expenditures has been incurred since acquisition; for simplicity, however, the capital expenditures have been added to the tax basis but not separately depreciated. Select one: a. $450,000 b. $489,077 c. $460,385 d. $382,500