Answer:
correct answer is (A) $85,000
Explanation:
given data
purchased house = $95,000
Empty lots area sold = $10,000
fair market value = $160,000
land price rise = $20,000
solution
we can say here that fair market value is more than the fair preface of home
so adjusted introduce will be explanation behind weakening
and
basis depreciation of the house will be
basis depreciation of the house = $95000 - $10000
basis depreciation of the house = $85000
so correct answer is (A) $85,000
