(1) Inez's business reports its taxable income on a calendar-year basis. Inez acquired the following assets on May 21 of year 1: A phone list (a 197 intangible) with a useful life of 5 years acquired for $15,000. How much amortization expense on the phone list can Inez deduct in year 1, year 2, and year 3?

(2)Alan grandmother, Mary, owns the home in which she lives, a personal-use residence. Mary purchased the home years ago for $100,000. The fair market value of the home is currently $1,000,000. From a tax perspective, which of the following options is most beneficial for Alan? Assume the value of the home will continue to increase over the years.

a) Alan inherits the home from Mary.

b) Mary sells the home to Alan under an installment agreement so that Alan can use the installment method to defer some of his gain

c) Alan exchanges his home, which he currently uses exclusively as his personal residence, for Mary's home in a like-kind exchange. Alan purchased his home 2 years ago for $1,100,000, but it is now worth $1,000,000.

d) Mary gifts the home to Alan during Mary's lifetime.

(3) Terence, an individual, purchased some property in Sacramento, California, for $228,000 approximately 5 years ago. Terence exchanges his a parcel of land in Sacramento for another piece of land in Folsom, Califonria. What is Terences realized gain or loss, recognized gain or loss, and basis in the Folsom property in each of the following alternative scenarios? The transaction qualifies as a like-kind exchange and the fair market value of each property is $184,000.