a. Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $750; paint to match the other fleet vehicles at a cost of $1,990; registration costs of $2,616, which included $2,400 of sales tax and a registration fee of $216; wash and detailing for $78; and an engine tune-up for $349.
What is Jose’s cost basis for the delivery van?
Cost Basis: $______________
b. Emily purchased a building to store inventory for her business. The purchase price was $565,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $2,000 to repair minor leaks in the roof, $6,300 to make the interior suitable for her finished goods, and $745 in legal fees.
What is Emily’s cost basis in the new building?
Cost Basis: $______________