Question 1 of 10.

On June 24, 2021, Erika purchased a duplex with the intent of renting both units. The seller, Emanuel, had fallen behind on payments, so Erika paid Emanuel $50,000 in cash and assumed the $225,000 mortgage. The assessed value of the property is $245,000, with $35,000 of that for the land. Erika's other sale expenses are:

• $2,200 mortgage interest owed by Emanuel.
• $1,750 real estate tax owed by Emanuel.
• $300 legal fees.
• $500 loan assumption fee.

What is Erika's basis in the duplex?

$214,250

$214,750

$279,250

$279,750