Mona Purchased a Business from Judah for $1,000,000 ? What Is Mona's Adjusted Basis for the Land, Building

question 109

Multiple Choice

Mona purchased a business from Judah for $1,000,000.Judah's records and an appraiser provided her with the following information regarding the assets purchased: $$\begin{array} { l r r } & \text { Adjusted Basis } & \text { FMV } \\\text { Land } & \$ 195,000 & \$ 270,000 \\\text { Building } & 310,000 & 450,000 \\\text { Equipment } & 95,000 & 180,000\end{array}$$ ? What is Mona's adjusted basis for the land, building, and equipment?

• A)Land $270,000, building $450,000, equipment $180,000.
• B)Land $195,000, building $575,000, equipment $230,000.
• C)Land $195,000, building $310,000, equipment $95,000.
• D)Land $270,000, building $521,429, equipment $208,571.
• E)None of the above.

---

Definitions:

Potential Difference

The difference in electric potential energy per unit charge between two points in a circuit.

Voltage-Gated Channels

Protein channels in cell membranes that open or close in response to changes in electrical potential, allowing ions to pass in and out of the cell.

Repolarization

The process by which cells, particularly nerve and muscle cells, restore their membrane potential to a resting state after depolarization.

All-Or-None Response

A principle that states that nerve or muscle fibers respond to stimuli at their threshold with a complete response or not at all.