Exercise $13-27($LO$,1)$

Melba purchases land from Adrian. Melba gives Adrian $$225,000$ in cash and agrees to pay Adrian an additional $$400,000$ one year later plus interest at $5\%.$

a$.$ What is Melba's adjusted basis for the land at the acquisition date?

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b$.$ What is Melba's adjusted basis for the land one year later?