I:6-47 Constructive Ownership. During the current year, Troy sells land to Berry Corporation for $165,000. Troy purchased the land for investment in 2002 for $170,000. Berry Corporation is owned as follows:

Owner Percentage Ownership Tom (Troy’s son) 20%

Jimmy (Troy’s cousin) 15%

Jimmy’s father (Troy’s uncle) 30%

Angie (Troy’s wife) 10%

Nicole (Angie’s Sister) 25%

Troy and Jimmy are equal partners in a separate entity, TJ Partnership.

a. What is Troy’s constructive ownership in Berry Corporation?

b. What is the amount of loss Troy may recognize?

c. How would your answers to Parts a and b change if TJ Partnership owned 25%, instead of Nicole?