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please solve A building was purchased 10 years ago for $3,000,000. During that period straight-line depreciation (2%/year) was used to reduce the taxable income from
please solve A building was purchased 10 years ago for $3,000,000. During that period straight-line depreciation (2%/year) was used to reduce the taxable income from this investment held in an LP. The building sold for $5,000,000. Improvements of $500,000 were made to the building just before it was sold. Note: the improvements were not capitalized (no depreciation was taken for the improvements in any prior tax year). What is the basis for this property? Show your work for partial credit. Maximum number of characters (including HTML tags added by text editor): 32,000 Show Rich Text Editor (and character count)
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