On October 7, 2016, Grace Gems purchased a going business for the lump-sum price of $200,000. The fair market values of the assets Grace purchased were as follows:

	U.S. government securities	$10,000
	Land	36,000
	Building	90,000
	Equipment	15,000
	Furniture	9,000

What is Grace's basis in the building?

Question 13 options:

1)

$90,000

2)

$95,000

3)

$100,000

4)

$102,500

5)	None of these