You paid $450,000 to purchase a rental property recently. You have spent $5,000 for maintenance and $5000 as property taxes. The house was recently appraised at $400,000. If you sell the house you will incur $20,000 in selling costs. If you decide to use the house as your office, what value should you assign it?

a.

$390,000

b.

$410,000

c.

None of the options are correct.

d.

$370,000

e.

$440,000