Sam Bought a House for $200,000 $\$ 20,000$ B) $\$ 250,000$

Multiple Choice

Sam bought a house for $200,000. He spent $50,000 to add a room. He sold the house for $260,000. Sam's adjusted basis is:

A) $\$ 20,000$
B) $\$ 250,000$
C) $\$ 260,000$
D) $\$ 150,000$