Ling inherited an empty commercial building from her mother in August 1992. Her mother had originally bought it in November 1986 for $40,000. It was...

Ling inherited an empty commercial building from her mother in August 1992. Her mother had originally bought it in November 1986 for $40,000. It was worth $110,000 when Ling inherited it. In 2018 Ling spent $450,000 to convert the building into two apartments.

What is the cost base (excluding indexation) of the building, if Ling were to sell the two apartments today?

1. 1) $490,000
2. 2) $450,000
3. 3) $560,000
4. 4) $40,000
5. 5) $110,000