1. Sheriff Woody purchased vacant land in 2008 that he subdivided for resale as lots. All 10 of the lots were sold during 2018. The lots had a tax basis of $10,000 each and sold for $30,000 each. Woody made no substantial improvements to the lots. He paid a 20,000 real estate commission. How much gain will Woody have to realize and recognize and what is the character of the gain? (10 points) 2. Buzz Lightyear had $26,000 of net short-term capital loss in 2017. In 2018, Buzz has $27,000 of long-term capital loss and $36,000 of long-term capital gain. How much capital gain or loss will Buzz report in 2018? Explain your answer. (10 points)