1) Sanchez Company sold land for $100,000 to Belita Sanchez, who owns 60 percent of the outstanding stock of Sanchez. The companys adjusted basis in the land is $120,000. a. Compute the companys realized and recognized gain or loss on the sale of the land. b. What is Belitas adjusted basis in the land? c. If Belita sold the land for $90,000 two years after she purchased it, compute her realized and recognized gain or loss. d. If Belita sold the land of $105,000 two years after she purchased it, compute her realized and recognized gain or loss. e. If Belita sold the land for $145,000 two years after she purchased it, compute her realized and recognized gain or loss. 2) Lopez Company transfers a computer used in its business that has an adjusted basis of $300 and an FMV of $1,000 to Greene Company and receives in exchange a laser printer with an FMV of $600 that it will use in its business and cash of $400. a. Calculate Lopezs realized and recognized gain or loss. b. What is Lopezs basis in the laser printer? 3) Garrison Corporation transfers unimproved land to Rucker Corporation and receives in exchange improved land with an FMV of $600,000 and $250,000 of cash. Ruckers adjusted basis in the improved land is $750,000. Garrisons adjusted basis in the unimproved land is $400,000 and the FMV of the land is $900,000. At the time of the exchange Garrisons unimproved land is subject to a $200,000 mortgage that Rucker assumes. Ruckers improved land is subject to a mortgage of $150,000 that Garrison assumes. a. Compute Garrisons realized and recognized gain or loss on the exchange of the unimproved land and its basis in the newly acquired improved land. b. Compute Ruckers realized and recognized gain or loss on the exchange of the improved land and its basis in the newly acquired unimproved land. 4) The business equipment of Connor Corporation was destroyed in a fire. The insurance company reimburses Connor $221,000. At the time of the fire, the adjusted basis in the equipment was $171,000. Two months after received the insurance proceeds, Connor Corporation purchases similarly functioning equipment that costs $215,000. a. Compute Connors realized and recognized gain or loss from the casualty. b. What is Connors basis in the new equipment/ 5) Grossman Company received land with a fair market value of $90,000 and $10,000 in cash from Francona Company. In exchange, Grossman transferred land to Francona that had an FMV of $100,000 and an adjusted basis of $130,000. a. Calculate the gain or loss that Grossman realized on the exchange. b. How much of Grossmans realized gain or loss is recognized? c. What is Grossmans adjusted basis in the land it received from Francona