On February 3 of the Current Year, Caroline Converts Her

Multiple Choice

On February 3 of the current year, Caroline converts her house to a rental property. Caroline's adjusted basis in the house is $120,000 and the fair market value is $150,000 on the date of conversion. What is Caroline's adjusted basis in the rental property for depreciation purposes?

A) $30,000
B) $120,000
C) $150,000
D) $170,000
E) $180,000