17. LO.3 On September 18, 2021, Gerald received land and a building from Lei as a gift....

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17. LO.3 On September 18, 2021, Gerald received land and a building from Lei as a gift. Lei paid no gift tax on the transfer. Lei’s records show the following:

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

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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