Question

Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made $50,000 of capital improvements on the complex, and depreciation claimed on the building to date is $128,700

Answer 1

$671,300

Step-by-step explanation:

Calculation to determine Jocasta's adjusted basis in the building.

Adjusted basis =[$750,000-($128,700 - $50,000)]

Adjusted basis=$750,000- $78,700

Adjusted basis = $671,300

Therefore Jocasta's adjusted basis in the building will be $671,300