George purchased a lot in 2010 for $2,000,000 (he paid $1,200,000 and borrowed $800,000 from...
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Accounting
George purchased a lot in 2010 for $2,000,000 (he paid $1,200,000 and borrowed $800,000 from a bank), in the same year he built a small office building on the lot at a cost of $500,000. In 2015 he made improvements for $50,000. George sold the building for $3,000,000 in 2023.George's approximate depreciation was $50,000.
a) What was his basis?
b) Amount of gain realized?
c) Amount of gain recognized?
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