Question 3 of 75.

Seiji converted his personal residence to rental property in 2021. He purchased the property in 2016 for $106,000, of which $16,000 was allocable to the land. There were no adjustments to his original basis during the period of time the property served as his primary residence, but on the date of conversion, an appraisal valued the property at $170,000; $20,500 was allocated to the land. Seiji's basis for depreciation is: A) $90,000; B) $106,000; C) $149,500; D) $170,000