Question $25$ of $75.$

When Naren sent her son Brett to college, she purchased a house near campus for $$340,000.$ Empty lots in the area sold for approximately $$45,000$ at the time. After Brett graduated, Naren decided to keep the house for use as a rental. The fair market value at the time of the conversion was $$580,000,$ and the price of the land had risen to $$60,000.$ What is the basis for depreciation of the house?

$$ $$340,000$

$$ $$295,000$

$$ $$520,000$

$$ $$580,000$