3. The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1–7.

Ivan sold the following securities during the year:

The selling price given is net of sales commissions. In addition to the above amounts, the Mango mutual fund distributed a long-term capital gain of $750 on December 30, 2010.

Ivan purchased 5 acres of raw land in Reno, NV, 10 years ago. His basis in the land was $50,000. On August 1, 2010, he sold the land for $150,000 on the installment method. Ivan received $30,000 in the year of sale, and the balance was payable at $12,000 per year for the next 10 years, plus a market rate of interest.
On May 15, 2010, Ivan and Irene sold their personal residence for $585,000 and purchased a new house for $725,000. They had owned the old house for 20 years and it had an adjusted basis of $35,000. The house had been their personal residence for all the years they were married. They moved into the new house on May 18, 2010.
Required: Combine this new information about the Incisor family with the information from Chapters 1–7 and complete a revised 2010 tax return for Ivan and Irene. No AMT is payable. This completes the Group 4 multichapter case.

Transcribed Image Text:

Security Orange, Inc. Description 100 Shares Common 02/11/95 Date Acquired Selling Adjusted Date Sold Price Basis 04/16/10 $3,000 $2,150 Banana, Inc. 100 Shares Common 07/17/99 07/31/10 1,950 4,210 Grape, Corp. 100 Shares Preferred 12/08/09 09/25/10 9,975 10,430 Plum, Inc. 5 Bonds due 4/2015 12/30/03 01/02/10 5,130 5,320 Peach Mutual Fund 5,010.150 Shares 05/30/04 10/22/10 60,120 56,480