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22. Martha McDonald purchased an office building in 1995 for $630,000. In 2015, she sells the building for $950,000. Over the years, she had

 

22. Martha McDonald purchased an office building in 1995 for $630,000. In 2015, she sells the building for $950,000. Over the years, she had replaced the windows and doors at a cost of $60,000, repainted the exterior at a cost of $15,000, and installed an elevator at a cost of $90,000. Martha had taken straight line depreciation on the building for 20 years, for a total of $400,000. a. What is Martha's basis in the building at the time of the sale? b. What is her realized gain? What is her recognized gain? C.

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