### Acquisition basis for building

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William has decided to purchase a large apartment complex. He pays \$100,000 cash, obtains a loan on the property for \$500,000, and assumes the first mortgage balance of \$250,000. He also gives the sellers \$100,000 of marketable securities that he purchased three years ago for \$125,000 and paid a finder's fee of \$5,000, legal fees of \$6,000, and transfer taxes of \$12,000. What is William's acquisition basis for the building? Does he have any other tax consequences as a result of this purchase?

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