Ms$.$ Miller set up a computer system for

Mr$.$ Town's business. In return, Mr$.$ Town

gave Ms$.$ Miller a storage facility. Ms$.$ Miller

plans to use this facility for business purposes

and plans to depreciate it$.$ The fair market

value of Ms$.$ Miller's services and the storage

facility was $$50,000.$ Mr$.$ Town's basis in the

storage facility was $$30,000.$ How should

Ms$.$ Miller treat the transaction, and what is her

depreciable basis for the property?

A$.$ Ms$.$ Miller should include the $$50,000$

in income and use $$30,000$ as the

depreciable basis for the storage facility

she received.

B$.$ Mr$.$ Town should include the $$30,000$ in

his income and use the $$50,000$ as the

depreciable basis for the storage facility.

C$.$ Ms$.$ Miller should include $$30,000$ in

income and $$50,000$ as the depreciable $-$

basis for the storage facility.

D$.$ Ms$.$ Miller should include $$50,000$ in

income and use $$50,000$ as the basis for

the storage facility.