(Solution) - On September 18 2016 Gerald received land and a building -(2025 Original AI-Free Solution)

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On September 18, 2016, Gerald received land and a building from Frank as a gift. Frank's adjusted basis and the fair market value at the date of the gift are as follows:

No gift tax was paid on the transfer.
a. Determine Gerald's adjusted basis for the land and building.
b. Assume instead that the fair market value of the land was $87,000 and that of the building was $65,000. Determine Gerald's adjusted basis for the land and building.