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Question - Reva originally sold her principal residence in an installment sale for $150,000. Her adjusted basis in the home was $110,00 at that time. Three years later, she repossessed the home from the buyer when the balance of the note was $135,000. She resold it within one year for $160,000. Original sale expenses were $3750 and resale expenses were $4000. Repossession costs were $3800. She incurred $3200 for improvements prior to the resale. What is Reva's basis in the repossessed property?
a. $113,200
b. $113,800
c. $117,750
d. $124,750
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