Using the following assumptions, calculate the Adjusted Basis and the Capital Gain from Appreciation for tax purposes:

Acquisition Purchase Price: $1,400,000

Acquisition Costs: $20,000

Cost Recovery: $177,708

Disposition Sales Price: $1,631,000

Costs of Sale: 5% of Sales Price

	1.	Adjusted Basis = $1,242,292 Capital Gain from Appreciation = $129,450
	2.	Adjusted Basis = $1,631,000 Capital Gain from Appreciation = $129,450
	3.	Adjusted Basis = $1,242,292 Capital Gain from Appreciation = $177,708
	4.	None of the above