$1.$ Courtney Kroon is planning to sell stock $($basis of $$184,000)$ to her son, Caleb, for $$160,000,$ the fair market value.

A$.$What are the tax consequences to Courtney $($does she have a realized and recognized gain or loss$)?$

B$.$What are the tax consequences $($realized and recognized gain or loss amounts$)$ to Caleb if he later sells the stock for:

i$.$ $$190,000?$

ii$.$$$152,000?$

iii. $$174,000?$

$2.$Create a memo for the tax file where you document the meeting, and the consequences of the above transactions.

$3.$Write a letter to Courtney in which you inform her of the tax consequences if she sells the stock to Caleb for $$160,000.$ Explain how a sales transaction could be structured that would produce better tax consequences for her. Courtney$$s address is $7200$ Randy Lane, Dallas, TX $75001.$