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When Terrance sent his daughter to college, he purchased a house near campus for $95,000. Empty lots in the area sold for approximately $10,000 at the time. After she graduated, Terrance decided to keep the house for use as a rental. The fair market value at the time of the conversion was $160,000 and the price of the land had risen to $20,000. The basis for depreciation of the house is ___

A. $140,000
B. $105,000
C. $95,000
D. $85,000

Respuesta :

squishy45
It’s d

Step by step explanation

The basis for depreciation of the house is Option D is $85,000.

  • The calculation is as follows:

= Purchase value of the house - empty lots of area sold

= $95,000 - $10,000

= $85,000

Learn more: brainly.com/question/16911495

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