Valarie Purchases a Rental House and Land for $180,000 During

Multiple Choice

Valarie purchases a rental house and land for $180,000 during a depressed real estate market. Appraisals place the value of the house at $140,000 and the land at $60,000 (a total of $200,000) . What is Valarie's basis in the house?

A) $126,000.
B) $140,000.
C) $180,000.
D) $200,000.
E) None of the above.