1. Alicia transferred her farm land (100% business) to Walter in exchange for a parcel of unimproved urban real estate held by Walter as an investment the farm was valued at $340,000 was encumbered by a mortgage obligation of $195,000. Alicias basis in the farm was $175,000. The urban real estate was valued at $320,000 was encumbered by a mortgage of $190,000. Alicia also received $15,000 cash. How much is Alicias gain recognized?

A-$165,000

B-15,000

C-0

D-20,000

2- Wilson purchased used refrigeration equipment for use in his business for $524,000. He wishes to expanse the maximum amount possible related to the equipment in 2016. If Wilsons net income before deductions for his equipment is 600,000, what is the maximum deduction for 2016?

A-314,000

B-500,000

C-104,800

D-504,800

please show the solution