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On January 1, 2017, Barry Barker owned rental property which had an adjusted basis to him of $350,000. Daniel made the following expenditures during 2017:

  1. On January 1, 2017, Barry Barker owned rental property which had an adjusted basis to him of $350,000. Daniel made the following expenditures during 2017:

Ordinary painting of building

$ 6,000

Repair of roof section (useful life not appreciably extended)

1,500

Legal fees paid to defend title

3,000

Property taxes

7,000

Assessment for local street improvement (value of property increased greatly)

5,000

In 2017, which of these expenditures does Barry capitalize and which does he expense? What is his adjusted basis in the building at year end? (Ignore depreciation.)

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