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Question Completion Status: QUESTION 20 Mary purchased on office property in March 2019. She paid $15,550,000 and incurred closing costs of $50,000. She made a $1,000,000 down payment and financed the rest of the purchase with a non-recourse loan. The municipality accessed the land and building at $3,000,000 and $12,000,000, respectively. During the year Mary incurred repairs expense of $2,250. What is Mary's basis in the land? QUESTION 21 Mary purchased on office property in March 2019. She paid $15,550,000 and incurred closing costs of $50,000. She made a 51.000.000 down payment and financed the rest of the purchase with a non-recourse loan. The municipality accessed the land and building at $3,000,000 and $12,000,000, respectively. What is Mary's basis in the building? QUESTION 22 Click Save and Submit to save and submit. Click Save All Answers to save all answers

Answer 1

Total cost of the property including the closing cost = (15550000 + 50000) 15,600,000.00 The municipality valued the land at 3000,000 and building at 12,000,000 so the proportion of the value of land = 3000000/(3000000+12000000) *100 20% the basis of land value would be = (0.2*15600000) 3,120,000.00 21) the proportion of building value in the total value according to municiapal corporation would be 12000000/(3000000+12000000) *100 80% the basis of building value would be = 0.8*15600000 12,480,000.00