Roberto, a sole proprietor, purchased a warehouse in 2018 for $500,000. His adjusted basis in the warehouse as of 12/31/2021 was $455,200. During 2022, there was a fire in the warehouse and Roberto spent $115,000 to repair the damage. The fire insurance company paid Roberto $100,000 on his damage claim. Assuming the 2022 depreciation expense on the warehouse is $40,000, what is the adjusted basis of the warehouse at 12/31/2022?

Answer rating: 100% (QA)

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