On July 1 of the current year, X converted a building from personal use to rental property. At the time of the conversion, the building was worth $120,000. Five years ago, X purchased the building for $200,000. The building is still encumbered by a $60,000 mortgage. What is the basis of the building for cost recovery? a. $180,000 b. None of the choices presented are correct. c. $140,000 d. $120,000 e. $200,000