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Determine the adjusted basis of each of the following assets: a. Andr purchased a parcel of land three years ago for $13,800. In the current
Determine the adjusted basis of each of the following assets: a. Andr purchased a parcel of land three years ago for $13,800. In the current year, the adjoining property owner sues him, claiming that part of Andr's property belongs to him under the right of adverse possession. Andr incurs $4,150 in legal fees successfully defending against the lawsuit. He pays annual property taxes of $360 on the land and has paid $3,680 in interest on the loan he took out to acquire the property. b. Ren purchases 1,000 shares of Cramdem Company common stock for $8 per share on October 13, 2018. In 2019, Cramdem pays a taxable cash dividend of 20 cents per share. Ren sells 200 shares on August 22, 2020, for $3 per share. On December 2, 2020, Cramdem pays a nontaxable cash dividend of 20 cents per share. Rufus owns 12 acres of land he purchased as an investment for $4,990. He spent an additional $33,890 subdividing the land into residential parcels and having utility lines run to the property. After the subdividing and utility lines had been completed, he gifted two acres of the land to his sister as a wedding present c
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