Self$-$Study Problem $4\mathrm{.}3$

For each of the following situations, determine the basis of the property:

Jakobi purchased equipment at a cost of $$15,000,$ made capitalizable improvements of $$1,000$ and depreciated the equipmert $$5,060.$ What is the basis of the equipment?

$$

Kristian purchased a new home for $$200,000.$ He put down $$50,000$ in cash and took out a martgage for the rest. At the time of cloaing, ile also paid $$1,000$ for tble insurance, $$500$ in recording fees, and the bank required that he place $$2,500$ in an escrow account for property taxes. What is the basis of the home? $$

When Barry's grandmother passed away, she gave Barry a diamond ring thet was worth $$5,000$ at the timst of death, Barry's grandmocher had purchased the ring for $$5,400.$ What is Barny's basis in the ring if he sells it for $$7,000?$ What if he sells it for $$5,000?$ What if he sells it for $$5,800?$

$x$ regardiess of sales price

On Robin's birthday, his grandmother gave him a ring that was worth $$6,000$ at the time of the gift. Robin's grandmother had purchased the ring for $$5,400.$ What is Robin's basis in the ring if he sel's it for $$7,000?$ What if he sells it for $$5,000?$ What if he sells it for $$5,800?$

$x$ regardiess of sales price

On Maurice's birthday, his grandmather gave him a ring that was warth $$5,400$ at the time of the git. Maurioe's grandmother had purchased the ning for so$,$ poci. what is Maurices sossi in the ring if he sel's it for $$7,000?$ What if he sells it for $$5,000?$ What if he selts it for $$5,800?$

When sold for $$7,000,$ which is $$ carryover basis, the basis for sale is carryover bass of $$6,000.$ If sald at a $,$ the bass is the FMV of the date of the gift $($ $$5,400).$ If sold for a price in bekween the FMtV and carryover basis, there is no qain or less $$ and so the basis must be $$5,300.$

Feechasck