On September 18, 2013, Gerald received land and a building from Frank as a gift. Frank's adjusted basis and the fair market value at the date of the gift are as follows:
Asset Adjusted Basis FMV
Land................$100,000................$212,000
Building................80,000.................100,000
Frank paid gift tax of $45,000 on the transfer.
a. Determine Gerald's adjusted basis for the land and building.
b. Assume instead that the fair market value of the land was $87,000 and that of the building was $65,000. Determine Gerald's adjusted basis for the land and building.