Question

Logan purchased a rental home and lot for $150,000. Her expenses totaled $5,000. Lots in the area sell for approximately $10,000. What is Logan's basis for depreciation in the house

Answer 1

The correct response is "145,000 ".

Step-by-step explanation:

The given values are:

Purchased cost,

= $150,000

Expenses,

= $5,000

Selling cost,

= $10,000

Now,

Logan's basis for depreciation will be:

=
`Purchased \ cost+Expenses-Selling \ cost`

On putting the values, we get

=
`150000+5000-10000`

=
`155000-10000`

=
`145,000` ($)