On June 1, of the current year, Tab converted a machine from personal use to rental property. At the time of the conversion, the machine was worth 90,000. Five years ago Tab purchased the machine for 120,000. The machine is still encumbered by a 50,000 mortgage. What is the basis of the machine for cost recovery? a. 140,000 b. 70,000 c. None of the above d. 120,000 e. 90,000