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?