Emily purchased a building to store inventory for her business. The purchase price was $980,000. Emily also paid legal fees of $600 to acquire the building. In March, Emily incurred $2,000 to repair minor leaks in the roof (from storm damage earlier in the month) and $5,400 to make the interior suitable for her finished goods.What is Emily’s cost basis in the new building?

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Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

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