Question - Durwin receives a house as a gift from his father. His father's basis in the house and the land is $90,000. On the date of the gift, the land and the house have a fair market value of $40,000 and $80,000, respectively. No gift tax is paid by Durwin's father at the time of the gift. Select the answer that correctly answers the following:
(a) What is Durwin's basis in the land?
(b) What is Durwin's basis in the house?
(c) Will the basis of the land and house be the same as in parts (a) and (b) for purposes of determining a loss on their sale?