XYZ Corporation purchased land and an office building for $2,800,000. The real estate contract did not specify the amounts to allocate to the land and to the building. An appraisal determined the fair market value (FMV) of the land to be $1,000,000 and the fair market value (FMV) of the building to be $3,000,000.

a) Please calculate the basis of the land. Show your work.

b) Please calculate the basis of the building. Show your work.