LO.3 Alicia owns two investment properties that she acquired several years ago. Her adjusted basis for each is as follows:

Regular Income Tax AMT Land $100,000 $100,000 Apartment building 450,000 490,000 Alicia sells the land for $250,000 and the building for $800,000.

a. Calculate Alicia’s recognized gain or loss on the sale of each asset for regular income tax and AMT purposes.

b. Determine the AMT adjustment on the sale of each asset.