On June 24, 2021, Erika purchased a duplex with the intent of renting both units. The seller, Emanuel, had fallen behind on payments, so Erika paid Emanuel $50,000 in cash and assumed the $225,000 mortgage. The assessed value of the property is $245,000 with $35,000 of that for the land. Erika's other sale expenses are: * $2,200 mortgage interest owed by Emanuel. * $1,750 real estate tax owed by Emanuel. * $300 legal fees. * $500 loan assumption fee. What is Erika's basis in the duplex? 

1. $214,250 

2. $214,750

3. $279,250 

4. $279,750