Problem 7-34 (LO. 3, 4) Heather owns a two-story building. The building is used 40% for business use and 60% for personal use. During 2018, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the business portion. At the time of the fire, the building had a fair market value of $900,000. Immediately after the fire, the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed If an amount is zero, enter "O". a. Determine the business and personal gain or loss in regard to the building and its contents Business Personal Total $800,000 (100,000) $700,000 Portion Portion 320,000 100,000V 220,000 480,000 Cost of building Less: Depreciation Adjusted basis 480,000 Decline in FMV $700,000 220,000 X 480,000 X Business Personal Portion Portion Loss on building (lesser of basis or