Darrell owns and operates a small 20 acre farm, which is comprised of three (3) separate parcels of property.

a) PARCEL A has a total of one acre, which Darrell purchased in 2004 for 200,000. The 2004 property tax notice showed the fair market value of the land at 20,000 and the house at 180,000. Darrell, his wife, Alice, and their 2 children have resided in the house as their primary principal residence since 2004. In April of 2014, Darrell constructed a large garage on the property at a total cost of $160,000. The garage is (i) used exclusively to park and store his farm equipment (he parks his personal cars in a 2 car garage attached to the residence), and (ii) qualifies as commercial real property for purposes of computing MACRS depreciation. Darrell elected in 2014 to NOT use 179 or Additional First Year Depreciation on any property placed in service that year.

b) PARCEL B originally consisted of 5 acres of raw, undeveloped land, which Darrell purchased in 2009 for $110,000. In 2010 he granted the State of Utah a right of way to construct a road across exactly one acre of his land. Darrell was paid $37,000 for this right of way, had $1,000 of sales expenses, and used basis to offset any taxable gain.

c) PARCEL C consists of 15 acres of raw undeveloped land, which were gifted to Darrell by his father in 2015. His father inherited the 15 acre parcel from Darrells grandfather when the grandfather died in 2011. Darrells grandfather acquired the land in 1937 for $100 per acre ($1,500 total). The land had a fair market value of $215,000 on the date of death of his grandfather. At the time of the gift to Darrell from his father, the fair market value of the land had dropped to $205,000.

(20 Points). What is Darrells basis in his 20 acres of farm land and improvements (including the house and barn) if he were to sell the entire real property at a gross sales price of $550,000?