Ted purchases some forest land in 2017 with the intention of building a log cabin to use as a vacation home. To obtain the land, Ted pays $10,000 cash, assumes the seller's $19,000 mortgage on the land, and pays $3,000 in commissions and legal fees related to the purchase. In 2018, Ted pays a contractor $4,000 to bulldoze and level the site of the log cabin. In 2019, Ted has a well dug and water and sewer lines laid in the ground at a cost of $6,000. Ted paid $2,000 of property taxes in 2017 and $5,000 of property taxes in 2018 and 2019 on the land. What is Ted's basis in the land at the end of 2019?
A. $54,000
B. $42,000
C. $38,000
D. $36,000
E. $32,000
Answer: B
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