Investor purchased a small strip

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Reference no: EM13947076

Investor purchased a small strip. The contract price $800,000 and the buyer incurred $20,000 in associated purchasing exp., including attorney & appraisal fees, as well as property inspection and survey costs. The land value at the time of this purchase was $200,000. Calculate & define each:

a) original basis

b) depriciation basis

c) annual cost recovery allowance during each yr of the holding period

d) what is adjusted basis when property sold at end

Reference no: EM13947076

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