Dual-energy imaging has emerged as a superior way to recognize materials in X-ray computed tomography. To estimate material properties such as effective atomic number and density, one often generates images in terms of basis functions. This requires decomposition of the dual-energy sinograms into basis sinograms, and subsequently reconstructing the basis images. However, the presence of metal can distort the reconstructed images. In this paper we investigate how photoelectric and Compton basis functions, and synthesized monochromatic basis (SMB) functions behave in the presence of metal and its effect on estimation of effective atomic number and density. Our results indicate that SMB functions, along with edge-preserving total variation regularization, show promise for improved material estimation in the presence of metal. The results are demonstrated using both simulated data as well as data collected from a dualenergy medical CT scanner.