1. Bee owns land (Bravo) with an adjusted basis of $60 and a fair market value of $100. Bravo is subject to a mortgage of $4. B sells the land to Dell who gives Bee $96 in cash and assumes the mortgage.

a)Does Bee realize gain/loss on the transaction and if yes, how much?

b)Does Bee recognize gain/loss on the transaction and if yes, how much?

2. Assume there is no mortgage and Bee swaps Bravo to Dell for land (Waterland) worth $90, and $10 cash.

a)Does Bee realize gain/loss on the transaction and if yes, how much?

b)Does Bee recognize gain/loss on the transaction and if yes, how much?

c)What is Bees basis in Waterland?

3. Assume there is no mortgage but Waterland is worth $45 so Bee gets Waterland plus $55 in cash.

a)Does Bee realize gain/loss on the transaction and if yes, how much?

b)Does Bee recognize gain/loss on the transaction and if yes, how much?

c)What is Bees basis in Waterland?