On July 1, 2019 Tiffany , Inc. Purchased the assets of ELDC, Inc. directly from ELDC. Tiffany consummated the purchase using cash of $20,000,000 and property with an adjusted basis of $500,000 and a Fair Market value of $3,000,000. At the time of the acquisition, ELDC had the following assets: Adjusted Basis Fair market Value Accounts Receivable $ 400,000 $ 300,000 Marketable Securities $ 300,000 $ 800,000 Loan Receivable $ 200,000 $ 100,000 US Government Securities $ 500,000 $ 500,000 Inventory $ 1,000,000 $ 2,000,000 Furniture/Fixtures $ - 0 - $ 1,100,000 Building $ 600,000 $ 4,000,000 Covenant Not to Compete $ - 0 - $ 1,200,000 Totals $3,000,000 $ 10,000,000.

Tiffany IIs cumulative tax basis in its assets is equal to: