All tax calculations should be based on the 2020 Tax Rate Schedules. Figures should be rounded to the nearest dollar. Percentages should be rounded to the nearest whole percentage (e.g., 32% instead of 32.2%) Adjusted basis. Ludwig owned some land and a workshop building on the land. He acquired the land and building in 2014 for $600,000, of which $400,000 was allocable to the land and $200,000 allocable to the building. In 2018, there was a storm that damaged (but did not destroy) the roof of the workshop building. Ludwig spent $800 repairing the roof. Ludwig also spent $800 each year from 2015 to 2019 to paint the workshop. In 2019, Ludwig added a room to the building at a cost of $70,000. Through the end of 2019, Ludwig took depreciation deductions totaling $27,000. What is the adjusted basis of the workshop building at the beginning of 2020?

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Adjusted Basis Unadjusted Basis Capex Total Depreciation Unadjusted Basis 200000 No... View the full answer