LO.4 George sold land to an unrelated party in 2011. His basis in the land was $45,000, and the selling price was $120,000—$30,000 payable at closing and $30,000 (plus 10%

interest) due January 1, 2012, 2013, and 2014. What would be the tax consequences of the following? [Treat each part independently and assume that (1) George did not elect out of the installment method and (2) the installment obligations have values equal to their face amounts. Ignore interest in your calculations.]

a. In 2012, George gave to his daughter the right to collect all future payments on the installment obligations.

b. In 2012, after collecting the payment due on January 1, George transferred the installment obligation to his 100% controlled corporation in exchange for additional shares of stock.

c. On December 31, 2012, George received the payment due on January 1, 2013. On December 15, 2013, George died, and the remaining installment obligation was transferred to his estate. The estate collected the amount due on January 1, 2014.