Mark purchased some land for $88000. He paid $13000 as a cash down payment and financed the

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Mark purchased some land for $88000. He paid $13000 as a cash down payment and financed the remaining amount. Closing costs were $3,000. What is his basis in the property. A) $75,000 B) $88,000 C) $16,000 D) $91,000 Paul's business asset is completely destroyed by fire on March 3, 2019. Paul purchased the asset in 2011 for $800,000; his adjusted basis in the asset at the time of the fire was $420,000. Paul receives $1m from the insurance company on May 5 2019, what amount must Paul invest in qualified replacement property to be able to defer recognition of the $580,000 gain he realized ?

A) $800,000

B) $420,000

C) $520,000

D) $1,000,000