Carl purchased a building costing $120,000 in 2000 for use in his landscape business. In 2009, he built an addition to the building at a cost of $30,000. In 2012, a tornado damaged the building. The cost of repairing the building was $22,000 and Carl's insurance company paid $16,000 of the cost of the repairs. Depreciation deducted on the building for 2000 through 2014 totaled $18,000. What is Carl's adjusted basis in the building at the end of 2014? Explain.

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The Answer of Carl purchased a building costing $120,000 in 2000 for use in his landscape business. In 2009, he built an addition to the building at a cost of $30,000. In 2012, a tornado damaged the building. The cost of repairing the building was $22,000 and Carl's insurance company paid $16,000 of the cost of the repairs. Depreciation deducted on the building for 2000 through 2014 totaled $18,000. What is Carl's adjusted basis in the building at the end of 2014? Explain.

Carl Purchased a Building Costing $120,000 in 2000 for Use