John inherited a summer home in Burlington, Vermont. His dad had thehome built in 1972 for $35,000. He received the home in1989 when his dad died. The property was worth $150,000 at his father's death. Since this time, John has made $130,000 of improvements.
Vacation Home - FMV Land 200,000 (Owned by John)Vacation Home - FMV Building 550,000 (Owned by John)
What is the cost basis of a vacation home?
Current and Future Economic Information: Risk-free Rate       3.00% 

Market Risk Premium       7.00%  

Market Standard Deviation   11.00% 

Inflation Rate                             2.85%

Answer rating: 100% (QA)

Date of Balance Sheet and Investment Portfolio As of December 31 2017 Time Period for Statement of Cash Flows For the Period January 1 December 31 2017 Riskfree Rate 275 Enter a number between 095 525 ... View the full answer