Leonard Lambert's Commercial Building, Which Had an Adjusted Basis of $500,000

Multiple Choice

Leonard Lambert's commercial building, which had an adjusted basis of $500,000, was partially destroyed by fire. fte fair market value was $800,000 just before the fire and $600,000 immediately after. Leonard received $150,000 insurance proceeds and deducted a $50,000 casualty loss. What is Leonard's basis in the building before any repairs are made?

A) $300,000
B) $350,000
C) $450,000
D) $500,000
E) $600,000