1.) Assume instead of the above that Aliza, who is not married, purchases a house for $500,000. She pays $200,000 in cash and signs a mortgage for $300,000. After living in the house as her principle residence for 2 years, she sells the house for $900,000 in cash and the buyer assumes her mortgage of $200,000. What is a Alizas amount realized on the sale?

2.)

a) Does Aliza realize a gain on the sale of her residence, (yes or no)

b) If yes, what is the amount of the gain?

3.)

Does Aliza recognize a gain on the sale, answer yes or no?

b) If yes, what is the amount recognized?

4.)