On September 18, 2022, Gerald received land and a building from Luna as a gift. No gift tax was paid on the transfer. Luna’s records show the following:

a. Determine Gerald’s adjusted basis for the land and building.

b. Assume instead that the fair market value of the land was $87,000 and that of the building was $65,000. Determine Gerald’s adjusted basis for the land and building.

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Asset Land Building Adjusted Basis $100,000 80,000 FMV $212,000 100,000