On September 18, 2021, Gerald received land and a building from Lei as a gift. No gift tax was paid on the transfer. Lei’s records show the following. 

a. Determine Gerald’s adjusted basis for the land and building.

b. Assume instead that the fair market value of the land was $87,000 and that of the building was $65,000. Determine Gerald’s adjusted basis for the land and building.

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Asset Land Building Adjusted Basis $100,000 80,000 FMV $212,000 100,000