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Preston purchased a rental home and lot for $200,000. His acquisition expenses, which included survey fees, recording fees, and legal expenses, totaled $15,000. Lots in
Preston purchased a rental home and lot for $200,000. His acquisition expenses, which included survey fees, recording fees, and legal expenses, totaled $15,000. Lots in the area sell for approximately $25,000. What is Preston's basis in the land?
A) $25,000 B) $26,875 C) $38,125 D) $40,000
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