Bernice purchased land and a building

Assignment Help Financial Accounting

Reference no: EM13953257

Bernice purchased land and a building for use in connection with her business. The costs associated with this purchase were:

Cash down payment $ 40,000

Mortgage on property 350,000

Survey costs 2,000

Title and transfer taxes 2,500

Charges for hookup of gas, water, and sewer line 3,000

Seller-owed back property taxes paid by Bernice 5,000

What is Bernice's tax basis for the land and building?

a. $ 44,500

b. $394,500

c. $397,500

d. $402,500

Reference no: EM13953257

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