Answer:
Adjusted Basis = $571,300
Explanation:
Given.
Amount Procured = $750,000
Capital Improvement = $50,000
Depreciation = $128,700
Adjusted basis is the net cost of an asset after adjusting for various tax-related items.
In other words, it is the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures.
Calculating Jocasta's adjusted basis in the building.
= Amount Procured - Depreciation - Capital Improvement
= $750,000 - $128,700 - $50,000
= $571,300
