Basis for rental property converted from personal use, is the LESSER of the Fair Market Value on the date of conversion or your adjusted basis (cost plus any adjustments). So with the information you have provided, your adjusted basis to compute gain or loss is $190,000. ($233,000-$43,000)
Are you sure about FMV at conversion? Is this what you have been using for depreciation? What about the value of land? (if there is any land) because you do not depreciate land, I was wondering if the land value was overlooked?
