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Yang converted her personal residence to rental property ten years ago. At the time of conversion, the fair market value of the house was $60,000.

Yang converted her personal residence to rental property ten years ago. At the time of conversion, the fair market value of the house was $60,000. After taking depreciation deductions of $12,000, Yang sells the house for $68,000. If Yang paid $50,000 for the house, her adjusted basis in the house is:

$30,000.

$38,000.

$50,000.

$60,000.

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