QUESTION 12 On June 1 of the current year, Tab converted a machine from personal use to rental property. At the time of the conversion, the machine was worth $90,000. Five years ago Tab purchased the machine for $120,000. The machine is still encumbered by a $50,000 mortgage. What is the basis of the machine for cost recovery? O a. $70,000 b. $90,000 O c. $120,000 O d. $140,000 O e. None of the above