Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,250. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,270; paint to match the other fleet vehicles at a cost of $1,440; registration costs of $2,970, which included $2,750 of sales tax and a registration fee of $220; wash and detailing for $121; and an engine tune-up for $327.

What is Jose's cost basis for the delivery van?

Emily purchased a building to store inventory for her business. The purchase price was $850,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $12,800 to repair the roof (does not extend the roof life), $3,400 to make the interior suitable for her finished goods, and $460 in legal fees.

What is Emily's cost basis in the new building?

Meg O'Brien 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 $1,700. Because the equipment is out of production and no longer available, the property is currently worth $5,550. Meg has decided to begin a new jewelry manufacturing trade or business.

What is her depreciable basis for depreciating the equipment?