In December of Year 1, Mr. Smith purchased a manufacturing plant for $92,600. The cost was allocated as follows:

Land (20%) -- $18,520

Building (80%) -- $74,080

The following items relating to the property occurred before the property was placed in service on January1, Year2:Building remodeling expenses

$15,000

Storm damage (casualty loss) to building

9,000

Easement granted for right-of-way

2,500

Legal fees for perfecting title paid

3,600

What is the adjusted basis of the building and land on January 1, Year2?