Bluff purchased equipment for business use for $35,000 and m…

Bluff purchased equipment for business use for $35,000 and made $1,000 of improvements to the equipment. After deducting depreciation of $5,000, Bluff gave the equipment to Russet for business use. At the time of the gift was made, the equipment had a fair market value of $32,0000.Ignoring gift tax consequences, what is Russet’s basis in the equipment?

Dawson, Inc’s warehouse (with an adjusted tax basis of $75,0…

Dawson, Inc’s warehouse (with an adjusted tax basis of $75,000) was destroyed by fire. The following year, Dawson received insurance proceeds of $195,000 and acquired new warehouse for $167,000. Dawson elected to recognize the minimum gain possible.What is Dawson’s basis in the new warehouse?