Emily purchased a building to store inventory for her business. The purchase price was $810,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $13,800 to repair the roof (does not extend the roof life), $4,400 to make the interior suitable for her finished goods, and $405 in legal fees.

What is Emilys cost basis in the new building?

Meg OBrien received a gift of some small-scale jewelry manufacturing equipment that her father had used for personal purposes for many years. Her father originally purchased the equipment for $2,180. Because the equipment is out of production and no longer available, the property is currently worth $6,000. Meg has decided to begin a new jewelry manufacturing trade or business.

What is her depreciable basis for depreciating the equipment?