1. Jasmine has a $24,000 net section 1231 gain for 2016. In 2015, Jasmine had a $10,000 net section 1231 loss. For 2016, Jasmine's net section 1231 gain is treated as:

2. Marc lives in an apartment building and has a one-year lease which began 3 months ago. His landlord is willing to pay Marc $1,450 to vacate the apartment building immediately. The landlord wants to sell the building to a buyer who will demolish the building and build a movie theater. The $1,450 Marc will receive will be:

A. An ordinary gain

B. A short term capital gain

C. A long term capital gain

D. Excludable from income

E. None of the above. The answer is

3. As part of the divorce agreement, Harold transfers his ownership interest in their persnonal residence to Lisa. The house has been jointly owned and the adjusted basis is $190,000. At the time of the transfer, the FMV of the house is $300,000. What is the recognized gain to Harold's and what is Lisa's adjusted basis?