1. Jeff, who is single, sells his vacation home which he owned for 3 years for $475,000.00. His adjusted basis in the residence is $122,000.00 and repairs to make the house more marketable are $7,000.00. His selling expenses totaled $15,000.00. What is his recognized gain? 2. Interest on Business Loans is deductible for AGI. True/False 3. Taxpayer exchanges a rental house at the beach with an adjusted basis of $150,000.00 and a FMV of $200,000.00 for a rental house at the mountains with a FMV of $200,000.00. What is the taxpayer's recognized gain or loss assuming the taxpayer qualifies for Sec. 1031 treatment