On June 1 of the current year, Allen converted a machine from personal use to business use. At the time of the conversion, the machine was worth $40,000. Allen purchased the machine five years ago for $80,000. The machine is still encumbered by a $10,000 note. What is the basis of the machine for cost recovery? Group of answer choices $70,000 $80,000 $40,000 $90,000 $30,000 $50,000