Emily purchased a building to store inventory for her business. The purchase price was $630,000. Emily also paid legal fees of $750 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 $7,500 to make the interior suitable for her finished goods. What is Emily's cost basis in the new building? Cost basis
Emily purchased a building to store inventory for her business. The purchase price was $630,000. Emily also paid legal fees of $750 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 $7,500 to make the interior suitable for her finished goods. What is Emily's cost basis in the new building? Cost basis
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 52P
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Transcribed Image Text:Emily purchased a building to store inventory for her business. The purchase price was
$630,000. Emily also paid legal fees of $750 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 $7,500 to make the interior suitable for her finished goods.
What is Emily's cost basis in the new building?
Cost basis
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