1) Jacob had the following transactions related to the land he owns and rents to a 3rd party: From 2/1 to 7/30, the rental income on Jacob's land was $40,050. Jacob had the tenant pay $20,025 to his son, Bob, and the rest of the $20,025 to himself. On 7/30/20, Jacob made a gift of his land to Bob. Jacob purchased this land in 2013 for $300,050. The fair market value of this land on 7/30/20 was $400,050. From 8/1 to 12/31, the rental income of $40,050 was all paid to Bob. On 10/1/20, Alex borrowed $120,050 from XYZ Bank and used the land he bought as security on the loan. . Part a) For tax purposes, how much rental income will Jacob report in 2020? Part b) How much rental income will Bob report in 2020? Part c) How much income will Bob recognize by receiving this land on 7/30/20? Part d) How much income will Alex recognize by borrowing $120,050 on 10/1/20? Part e) Assuming that Bob decides to sell the land on 3/1/21 to Hugh, who is an unrelated party. As part of the sale, Hugh pays Bob $300,050 in cash and gives Bob a convertible with a fair market value of $60,050. Calculate the gain or loss that Bob will recognize in 2020. Part f) Is the loss or gain long term or short term? Please show all your work. 1) Jacob had the following transactions related to the land he owns and rents to a 3rd party: From 2/1 to 7/30, the rental income on Jacob's land was $40,050. Jacob had the tenant pay $20,025 to his son, Bob, and the rest of the $20,025 to himself. On 7/30/20, Jacob made a gift of his land to Bob. Jacob purchased this land in 2013 for $300,050. The fair market value of this land on 7/30/20 was $400,050. From 8/1 to 12/31, the rental income of $40,050 was all paid to Bob. On 10/1/20, Alex borrowed $120,050 from XYZ Bank and used the land he bought as security on the loan. . Part a) For tax purposes, how much rental income will Jacob report in 2020? Part b) How much rental income will Bob report in 2020? Part c) How much income will Bob recognize by receiving this land on 7/30/20? Part d) How much income will Alex recognize by borrowing $120,050 on 10/1/20? Part e) Assuming that Bob decides to sell the land on 3/1/21 to Hugh, who is an unrelated party. As part of the sale, Hugh pays Bob $300,050 in cash and gives Bob a convertible with a fair market value of $60,050. Calculate the gain or loss that Bob will recognize in 2020. Part f) Is the loss or gain long term or short term? Please show all your work