7. LO.2 Address the following issues:

a. Melissa owns a residential lot in Spring Creek, Louisiana, that has appreciated substantially in value. She holds the lot for investment. She is considering exchanging the lot with her father for a residential lot in McComb, Mississippi, that she also will hold for investment. Identify the relevant tax issues for Melissa.

b. Assume instead that the lot Melissa receives from her father is located in Paris, France. Identify the relevant tax issues for Melissa.