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Hernando purchases a boat for $200,000. He refurbishes the boat for an additional $50,000. During a storm the boat is damaged, and Hernando receives $100,000

Hernando purchases a boat for $200,000. He refurbishes the boat for an additional $50,000. During a storm the boat is damaged, and Hernando receives $100,000 in cash from the insurance company for the damages, though he is able to complete the repairs for $75,000. 


What is Hernando's adjusted basis in the property if he decides to sell the boat?  

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