Adjusted Basis Question?

Joe owes an apartment complex he purchased 10 years ago for $480,000 with a $80,000 down payment accompanied by a $400,000 loan. He made $70,000 of capital improvements and her depreciation claimed is $100,000. What is her adjusted basis?

I got answer of $370,000 by using the formula adjusted basis = original basis + capital investment - accumulated depreciation.

Does this make sense or would i include the $480,000 instead of the $400,000