On October 7, 2017, Grey Knight purchased a going business for the lump-sum price of $200,000. The fair market values of the assets Grey purchased were as follows:

U.S. government securities $10,000

Land $36,000

Building $90,000

Equipment $15,000

Furniture $9,000

What is Greys basis in the building?

a. $90,000.b. $95,000.c. $100,000. d. $102,500.

My answer is (a) 90,000(FMV) total of assets was 10,000.00+36,000+15,000+9,000=70,000

200,000 lump sum-70,000(total assets)=130,000

130,000-90,000(FMV building)=40,000 left. How am I supposed to allocate the 40,000? also isn't Grey's basis in the building the FMV at the time received?