Emily purchased a building to store inventory for her business. The purchase price was $885,000. Emily also paid legal fees of $640 to acquire the building. In March, Emily incurred $2,000 to repair minor leaks in the roof (from storm damage earlier in the month) and $4,000 to make the interior suitable for her finished goods. What is Emily's cost basis in the new building?

Emily purchased a building to store inventory for her business. The purchase price was $885,000. Emily also paid legal fees of $640 to acquire the building. In March, Emily incurred $2,000 to repair minor leaks in the roof (from storm damage earlier in the month) and $4,000 to make the interior suitable for her finished goods. What is Emily's cost basis in the new building?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 32P

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