You acquire two properties valued at $5,000,000. You put 40% downpayment with a 60% mortgage loan. Your title policy is 2% of the purchase price. Your recording fee is $5000. Your documentary stamps are $5000. What is your initial tax basis?
1) $5,000,000
2) $5,100,000
3) $5,105,000
4) $5,110,000