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XYK Realty LLC purchased an office building on Nov. 1. They paid $500,000 in cash and a case of wine valued at $40,000. They owned

XYK Realty LLC purchased an office building on Nov. 1. They paid $500,000 in cash and a case of wine valued at $40,000. They owned the wine for 2 years and originally paid $25,000. They obtained a mortgage of $10,000,000 and incurred closing costs of $125,000 as part of the transaction. What is XYK basis in the property?.

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