Question

In 2008​, Elizabeth purchased a house for $ 155 comma 000 to use as her personal residence. She paid $ 31 comma 000 and borrowed $ 124 comma 000 from the local savings and loan company. In 2010 she paid $ 11 comma 000 to add a room to the house. In 2012 she paid $ 1 comma 400 to have the house painted and $ 1 comma 500 for​ built-in bookshelves. As of January 1 of the current​ year, she has reduced the $ 124 comma 000 mortgage to $ 111 comma 600. What is her basis for the​ house?

Answer 1

Answer:

$168,900

Explanation:

Basis for the house is the total of the initial cost + Cost of adding a room + Cost of the house paint + Cost of built-in bookshelves

= 155,000 + 11,000 + 1400 + 1500

= $168,900