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